S&P rates Cemex floaters BBB-

Standard & Poor's said it assigned its BBB- senior unsecured debt rating to Cemex SA de CV's (BBB/Watch negative) $1.5 billion fixed to floating callable perpetual debentures.

The notes will be issued by C5 Capital Ltd. & C10 Capital Ltd., both British Virgin Islands special purpose vehicles, the agency said, noting that the notes are secured by a first priority security interest in the issuer's rights and obligations under a mirror obligation to be issued by an indirect subsidiary of Cemex.

The rating is on CreditWatch with negative implications.

The one-notch differential between the corporate credit rating and the rating assigned to the notes reflects the interest deferral feature of the notes and the dual currency notes, the agency said, adding that structural subordination is mitigated by the guarantee of Cemex and Cemex Mexico SA de CV (BBB/Watch negative) to the dual currency notes, which are also guaranteed by New Sunward Holding BV.

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