Fitch to give Cemex bond BB

Fitch Ratings said it expects to assign a rating of BB to Cemex, SAB de CV's proposed dollar-denominated bond.

Proceeds from this bond, which is expected to be about $500 million, will be used to repay existing bank debt, the agency said, adding that the bond will be issued by Cemex and guaranteed by New Sunward and Cemex Mexico, SA de CV.

According to Fitch, the BB rating of these proposed notes takes into consideration Cemex's strong global business position as an integrated cement player and its ability to continue to generate free cash flow during the worst economic downturn in recent history.

The ratings factor in as positive the Mexican government's support of Cemex due to the size of the company and its importance to the country's economy, as well as the banks continued support of the company, the agency added.

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