Moody's gives Caue notes B1

Moody's Investors Service said it assigned a B1 foreign currency rating to the proposed $150 million senior unsecured notes due 2015 issued by Caue Finance Ltd., which are fully and unconditionally guaranteed by Camargo Correa Cimentos SA (CCC).

The B1 rating reflects the probability of a sovereign default implied by the Brazilian government's B1 foreign currency bond rating and the likelihood that, in the event of a sovereign default, the government would impose a foreign currency payments moratorium to companies domiciled in Brazil.

At the same time, Moody's said it assigned a corporate family rating to CCC of Ba3 with a stable outlook on a global local currency basis, reflecting the modest size and commodity focus of the company's operations, as well as the pressures of significant competition, substantial event risk deriving from the company's strategy of growth through acquisitions, and high levels of current idled capacity.

The agency said the ratings also incorporate the company's history of good operating margins, relatively strong credit metrics and steady cash flows.

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