S&P ups Grupo Cementos de Chihuahua

S&P said it upgraded Grupo Cementos de Chihuahua and its notes to BBB- from BB+.

“GCC has shown a consistent track record of solid operating performance and a deleveraging trend. This was mainly underpinned by its disciplined investment strategy, focus on operating efficiencies and cash generation, debt reduction, and its commitment to maintain a prudent financial policy,” S&P said in a press release.

“Although its cement volume sales dipped slightly, GCC's revenues remained unchanged from 2019 levels due to higher ready-mix sales and its efficient pricing strategy. It identified operating savings that expanded EBITDA margins to 33% in 2020 from 31% in 2019. We expect it to sustain these levels in the next couple of years because of permanent savings implementation of about $10 million, ongoing pricing initiatives, and our view that GCC will further increase the use of renewable energy and alternative fuels,” the agency said.

The outlook is stable.

© 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.