Moody's ups Cemex to Ba1

Moody's Investors Service said it confirmed the Ba1 senior unsecured ratings of Cemex SA de CV and the Baa3 senior unsecured ratings of Cemex Espana's guaranteed finance subsidiary, Cemex Finance Europe BV and its U.S. operating subsidiary, Cemex Inc. The outlook is stable.

Moody's also upgraded Cemex's issuer rating to Ba1 from Ba2.

This concludes the review for possible downgrade Moody's initiated on Sept. 28 following the company's announcement of its intent to acquire RMC Group plc of the United Kingdom in an all debt-financed transaction, which has now closed. RMC will become a subsidiary of Cemex Espana.

The ratings agency said the upgrade to Ba1 reflects the reduction in the absolute amount of debt at those entities.

While the RMC acquisition increases Cemex's overall business risk, primarily associated with the integration of a company that equals its size, the ratings confirmation reflects Moody's belief that Cemex management has proven adroit at effectively integrating past acquisitions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.