S&P puts Titan Cement on watch

Standard & Poor's said it placed the BB+ long-term corporate credit rating on Titan Cement Co. SA on CreditWatch with negative implications.

The watch follows the potential negative implications for Titan if the nongovernmental holders of the debt of the Hellenic Republic (BB+/Watch negative/B) are not paid in full and on time, according to the agency.

"We note that our criteria do not include a sovereign ceiling or require us to cap the ratings on Titan at the level of the sovereign rating," S&P analyst Terence Smiyan said in a statement.

"Nevertheless, a possible further deterioration of the sovereign's creditworthiness could have direct and/or indirect negative consequences for Titan that cannot be judged and assessed fully in the context of the current low visibility on, and substantial uncertainty over, Titan's home market of Greece. Such consequences could expose the group to risks beyond pure end-market industry exposure, in our view."

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