Moody's rates Elementia Ba3

Moody's Investors Service said it assigned a provisional Ba3 rating and A3.mx ratings to Elementia, SA's proposed 3 billion in Mexican pesos in senior unsecured certificados bursátiles due 2015. The agency also said it assigned a provisional Ba3 corporate family rating.

The outlook is stable.

The proceeds will be used to refinance about half of the debt outstanding under its existing $450 million 5-year term loan.

The ratings reflect the company's solid market positions for manufactured fiber cement, copper and aluminum products in Mexico and its various Central and South American markets, Moody's said.

They also take into account its modest financial leverage, its solid profit margins and the expectation of fairly stable earnings generation based on cost-plus pricing mechanisms in the metals division, which helps mitigate volatile metal input costs, the agency said.

The ratings are constrained by Elementia's limited operating scale and business diversification relative to its rated peers, Moody's added.

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