Moody's lifts Cemex view to positive

Moody's Investors Service said it revised the outlook on Mexico-based Cemex SA de CV's Baa3 senior unsecured debt rating to positive from stable.

The outlook change reflects Moody's increased confidence in Cemex's business profile and performance prospects following the ongoing progress made in digesting the March 2005 acquisition of RMC Group plc and the expectation that the company will gradually move toward a debt structure more consistent with those typically seen at investment-grade issuers in the building material industry.

Cemex's Baa3 rating balances a strong business profile, scale, healthy profitability and solid credit metrics with risks related to certain speculative-grade characteristics of its debt structure and the acquisition appetite and cyclicality observed in the building materials industry, the agency said.

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