S&P rates Grupo Cementos notes B

Standard & Poor's said it assigned its B issuer credit rating to Grupo Cementos de Chihuahua SAB de CV.

The outlook is positive.

S&P also said it assigned its B rating to the company's up to $260 million five- to 10-year senior secured notes. The recovery rating is 3.

The agency said the ratings reflect its assessment of Grupo Cementos' "aggressive" financial risk profile and "weak" business risk profile.

The ratings also reflect S&P's view of the company's geographic concentration and limited scale; the risks inherent to building materials companies, including demand that is highly correlated with economic conditions, affecting both price and volume; and the potentially volatile raw material costs - energy in particular, the agency said.

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