S&P rates new Votorantim notes B+

Standard & Poor's said it affirmed its BBB- local currency and its B+ foreign currency corporate credit ratings on Votorantim Group and affirmed its brAAA national scale rating.

In addition, S&P assigned its B+ rating to the up to $300 million senior notes to be issued by Voto-Votorantim Overseas Trading Operations III Ltd.

"Standard & Poor's has continually assessed Votorantim as above average in its ability to remain protected against the idiosyncrasies of the Brazilian economy, including the unstable macroeconomic environment (erratic demand growth patterns, volatile foreign exchange and interest rates, etc.) and volatile financial and banking markets," said S&P credit analyst Reginaldo Takara.

The group's resilience to rather stressful conditions in Brazil fundamentally results from its robust cash reserves and sound liquidity and expanding export capabilities in many of its core businesses. In addition, Votorantim has a well-diversified, commodity-based business portfolio that benefits from very positive business fundamentals, including a very strong market position in the profitable Brazilian cement market.

However, S&P said these positive factors are partly offset by the group's revenue base, which is still essentially generated in its home market - Brazil - despite initiatives to diversify geographically (notably in cement).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.