S&P keeps Cemex on watch

Standard & Poor's said its BBB long-term corporate credit rating on Cemex SA de CV and its key operating subsidiaries remain on CreditWatch with negative implications, where they were initially placed Oct. 27.

The agency said that this follows the announcement that Cemex has increased its offer price for Australia's Rinker Group Ltd. (BBB+/Watch Neg/A-2) by 22% to $15.85 per share from $13.00 per share.

According to S&P, the new transaction value has increased the likelihood of a negative rating action.

Notwithstanding, the agency said it continues to believe that the corporate credit rating would likely remain in the investment-grade category, noting that the CreditWatch listing reflects the company's intention to acquire Rinker and the uncertainty regarding its ability to continue to deliver financial performance consistent with its current expectations given the potential for a sharp increase in debt leverage.

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