Moody’s: St. Marys Cement notes Ba2

Moody's Investors Service said it assigned a rating Ba2 to the proposed $500 million senior unsecured notes due 2027 to be issued by Votorantim Cimentos' wholly owned subsidiary St. Marys Cement Inc. and unconditionally guaranteed by Votorantim Cimentos SA.

Votorantim Cimentos' existing ratings and its Ba2 corporate family rating remain unchanged.

The outlook remains negative.

The proposed issuance is part of Votorantim Cimentos' liability management with the objective of extending the company's debt maturity profile, and will not affect its leverage metrics because it will replace existing debt, the agency said.

Moody’s said the Ba2 ratings reflect Votorantim Cimentos' leading position in the Brazilian cement market, strong credit metrics, adequate liquidity, as well as its large scale and integrated operations, that translates into leading market share and above-average EBITDA margins when compared to global peers.

The ratings also take into consideration the company's affiliation with Votorantim SA (Ba2 negative) and its relevance to the parent company, as it contributes with 50% of its total EBITDA generation, for the second quarter ended June 2016.

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