Fitch lowers Camargo Correa

Fitch Ratings said it downgraded Camargo Correa SA's foreign-currency issuer default rating to BB- from BB+, local-currency issuer default rating to BB- from BB+, national scale rating to A+(bra) from AA(bra), national short-term credit rating to F1(bra) from F1+(bra) and $R1 billion debentures second issuance due 2014 to A+(bra) from AA(bra).

The agency also downgraded CCSA Finance Ltd.'s foreign-currency issuer default rating to BB- from BB+, local-currency issuer default rating to BB- from BB+ and $250 million senior unsecured bonds due 2016 to BB- from BB+.

The outlook is stable.

These rating actions follow the completion of the tender offer through which Camargo indirectly has acquired a total of 39.96% of Cimentos de Portugal, SGPS, SA (Cimpor) for €1.5 billion, Fitch said.

The completion of this transaction is negative to Camargo's credit quality considering the leverage being added to the business through this strategic acquisition, the agency said.

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