Moody's affirms Votorantim, rates notes Baa3

Moody's Investors Service said it affirmed the senior unsecured issuer ratings of Baa3 on the global-scale and Aa1.br on the Brazilian national-scale of Votorantim Participações SA, and revised the outlook to stable from negative.

Simultaneously, Moody's said it assigned a Baa3 foreign currency rating to the proposed senior unsecured notes in the amount of about $750 million to be issued by Voto -- Votorantim Ltd. and jointly and severally guaranteed by Votorantim and its subsidiaries Votorantim Cimentos Brasil SA and Companhia Brasileira de Aluminio.

The proposed notes issuance is part of Votorantim's liability management strategy and will not increase the group's leverage as the net proceeds will be used to refinance debt maturing in 2011 and 2012, consequently improving its debt maturity profile, the agency said.

The rating of the proposed notes considers Votorantim's low level of secured debt on a consolidated basis, and is not constrained by Brazil's Baa2 (outlook positive) foreign currency country ceiling, Moody's added.

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