S&P pulls Cemex from watch

S&P said it affirmed all its ratings for Cemex, including its BB issuer and secured debt ratings and removed them from CreditWatch with negative implications, where they were placed on April 1.

The agency said it expects a modest increase in Cemex's leverage in 2020, cost-cutting measures to improve profitability and a gradual recovery starting in 2021 would bring its debt-to-EBITDA ratio below 5x in the next 12 months.

The outlook is negative, which reflects the view the recovery path remains exposed to coronavirus-related risks, especially weak global economic conditions, which could delay the recovery of its debt-to-EBITDA and FFO-to-debt ratios to below 5x and above 20%, respectively, S&P said.

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