S&P cuts Unacem, notes to BB

S&P said it lowered the long-term corporate credit rating on Union Andina de Cementos SAA y Subsidiarias (Unacem) to BB from BB+.

The outlook on the corporate credit rating remains negative.

The agency also downgraded the issue-level rating on the company's $625 million senior unsecured notes due 2021 to BB from BB+.

S&P said Unacem’s results have continued to underperform the base-case scenario as a result of the prolonged delays in the execution of large infrastructure projects, postponements in public and private spending and lower activity in the construction sector where the company operates.

This situation was further exacerbated by the recent floods, which reduced cement dispatches in Peru during the first quarter of 2017.

Consequently, during the 12-month period ended March 2017, Unacem’s cement dispatch was about 7% lower than during the same period last year, the agency added.

© 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.