Moody's ups some Cemex ratings

Moody's Investors Service said it upgraded Cemex SA de CV's senior unsecured rating to Baa3 from Ba1. At this time, Moody's also withdrew the company's Ba1 corporate family rating and affirmed the Baa3 senior unsecured ratings of Cemex Inc. and Cemex Finance Europe BV, whose debt obligations are guaranteed by all of the significant operating subsidiaries of Cemex Espana.

The outlooks are stable.

Moody's said the upgrade reflects its recognition that Cemex's management has made progress in mitigating the near-term debt refinancing risk associated with the RMC Group acquisition through absolute debt reduction and the lengthening of its debt maturity profile. Recently, the company extended the median debt maturity profile from 3.1 years, following the RMC acquisition, to an average life of more than 4 years when taking into consideration available committed lines of credit.

Moody's believes the company will reduce absolute debt levels by at least $1.6 billion as compared to $1.2 billion when the outlook was changed to positive from stable in May.

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