Although Brazil-based cement producer Cimento Tupi's debt is currently high, we project favorable prices and higher
production capacity will help it improve its credit metrics in the next few years.
•We are affirming our 'B' global scale and 'brBBB-' national scale corporate credit ratings on Tupi, and our 'B' issue
rating on its $150 million unsecured notes due 2018.
•The stable outlook reflects our expectation that from 2013 onwards, cash flows will be stronger following the completion of the company's capacity expansion, which will result in stronger credit metrics.
Standard & Poor's Ratings
Services affirmed its 'B' global scale and 'brBBB-' national scale corporate credit ratings and its 'B' issue rating on Cimento Tupi S.A. (Tupi). The outlook is stable.
The ratings on Tupi reflect its aggressive financial profile, with a relatively high debt and less-than-adequate liquidity stemming from its expansion strategy. The ratings also reflect Tupi's vulnerable business profile due to the company's limited scope of operations in a highly competitive industry. The partly offsetting factors are Tupi's well-known brand in regional markets and the positive industry fundamentals in Brazil for the next Couple of years, despite the recent economic slowdown in the country.
No comments:
Post a Comment