Fitch puts Cemex on watch

Fitch Ratings said it placed Cemex's BBB foreign currency and local currency issuer default ratings , the AA+(mex) national long term and the F1+(mex) national short-term ratings of Cemex, SA de CV, as well as the BBB long term issuer default rating of wholly owned subsidiary Cemex Espana SA, on Rating Watch negative.

The agency said that the action follows the announcement that Cemex intends to make a tender offer to acquire all of the outstanding shares of Australia-based Rinker Group Ltd. for $12.8 billion in cash and the assumption of debt.

Fitch added it has also placed Rinker's long-term issuer default rating of A- and short-term F2 rating, as well as the issue rating of A- on its U.S. subsidiary Rinker Materials Corp.'s $150 million senior unsecured notes due 2025, on Rating Watch negative.

Positively, the transaction will improve the combined entities' operating profiles and provide geographic revenue diversification to existing operations, the agency added.

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