Moody's may cut Cemex

Moody's Investors Service said it placed the Ba1 senior implied rating of Cemex SA de CV and the Baa3 senior implied rating of Cemex Espana SA under review for possible downgrade.

The review was prompted by Cemex's announcement of its offer to acquire RMC Group plc in a transaction valued at roughly $5.8 billion.

Moody's placed under review Cemex's Ba1 senior implied, Ba2 senior unsecured issuer, Ba1 senior unsecured eurobonds due 2006, Ba1 senior unsecured global bonds due 2009 and Cemex Espana's Baa3 senior implied and Ba1 senior unsecured issuer and Cemex International's Ba1 preferred stock ratings.

Moody's said its review will address concerns over the ambitious size of the acquisition, as RMC revenues exceed those of Cemex and the significant redirection of management attention over the medium-term associated with integration of RMC.

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