S&P turns Titan Cement view to positive

S&P said it revised its outlook for Titan Cement International SA to positive from stable and affirmed the BB ratings on the company and its unsecured debt.

“We expect Titan Cement to continue to strengthen its operating performance, with the EBITDA margin improving to about 17%-18% in 2023 from 15% in 2022, leading to further leverage reduction. According to our base case, improving profitability and higher cash flow generation will result in strong credit metrics and FFO to debt continuing to exceed 30%,” S&P said in a press release.

The agency said it sees Titan Cement’s FFO to debt to reach about 38%-42% in 2023 and 2024, which it would be consider “commensurate with a higher rating.”

S&P said it may upgrade Titan Cement over the next 12 months if the company maintains its robust performance in key markets with FFO debt comfortably above 30%.

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