S&P gives Cemex notes BB

S&P said it assigned its BB issue-level and 3 recovery ratings to Cemex SAB de CV’s proposed senior secured notes due 2030. The recovery rating of 3 indicates bondholders can expect a meaningful (50%-70%) recovery in the event of a payment default.

Cemex is expected to use the proceeds for general corporate purposes, including the repayment of other debt, under the 2017 credit agreement.

The notes will be secured by a first-priority security interest over all the shares of Cemex Operaciones Mexico SA de CV, Cemex Innovation Holding Ltd., New Sunward Holding BV and Cemex Espana SA and all proceeds of such collateral. Cemex's main subsidiaries will guarantee the notes under the same terms as all of the company's other senior capital market debt, S&P said.

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