Fitch cuts InterCement

Fitch Ratings said it downgraded InterCement Participacoes SA's long-term foreign and local currency issuer default ratings to CCC- from B-, as well as the company's long-term national scale rating to CCC- (bra) from BB+ (bra).

Fitch also downgraded InterCement Financial Operations BV's unsecured notes due 2024 to CCC-/RR4 from B-/RR4.

The agency said that sharp recessions expected in Argentina and Brazil will lead to InterCement to generate significantly weaker cash flow than previously anticipated by Fitch.

“EBITDA from Brazil has been stagnant at a level below €70 million since 2016 due to the sharp economic contraction in Brazil compared with €413 million generated at the peak in 2013.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.