S&P gives Titan Global, notes BB

S&P said it affirmed its BB long-term and B short-term corporate credit ratings on Titan Cement Co. SA.

The outlook is positive.

The agency also affirmed its BB issue ratings on the €300 million fixed-rate notes due July 2019 and €200 million fixed-rate notes due January 2017.

In addition, S&P assigned its BB long-term corporate credit ratings to 100%-owned finance subsidiary Titan Global Finance plc, and its BB issue rating to the proposed new €250 million fixed-rate notes.

The issue rating is equalized with the long-term corporate credit rating on Titan Cement, reflecting the agency’s view of the notes' limited structural subordination to Titan Cement's obligations after the proposed refinancing.

To evaluate the proposed notes' structural subordination, S&P applied our general corporate criteria. It estimates that the company's ratio of priority debt to total assets will be about 14% after the proposed refinancing, as compared with a notching threshold of 15% for speculative-grade rated issuers.

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