S&P may cut Camargo Correa

Standard & Poor's said it revised the CreditWatch listing on Camargo Correa Cimentos SA's BB rating to negative from positive and kept its BB rating on parent Camargo Correa SA on CreditWatch negative.

The ratings remain on negative watch following news that the company plans to acquire Teixeira Duarte-Engenharia e Construcoes SA (Duarte). Under the current proposal, Camargo Correa Cimentos will remain a subsidiary of Camargo Correa, thus the ratings will be aligned.

The agency said it believes an eventual increase in debt to finance the acquisition could depress Camargo Correa Cimentos' credit metrics, already aggressive for its rating category, S&P said.

Nevertheless, the agency said it acknowledges that the company has an adequate cash position and benefits from non-core assets that could be divested to boost liquidity.

© 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.