Fitch rates Grupo Cementos notes BB

Fitch Ratings said it assigned a rating of BB(EXP) to Grupo Cementos de Chihuahua SAB de CV's proposed up to $275 million senior notes.

Proceeds will be used to fund the refinancing of Grupo Cementos’ $260 million notes due 2020 and for general corporate purposes.

The guarantors will be GCC Cemento, SA de CV, Cementos de Chihuahua, SA de CV and GCC of America, Inc. The notes will rank equal in right of payment to all other unsecured debt.

Fitch said the company’s contiguous presence from Chihuahua in northern Mexico to North Dakota and its efficient distribution and logistics system allow it to serve markets in 14 states across the U.S. Midwest, Southwest and Rocky Mountain regions. The company is the dominant cement producer in the state of Chihuahua and has strong market positions in Colorado, North Dakota, South Dakota, Wyoming, New Mexico and western Texas, the agency added.

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