Fitch rates Votorantim notes BBB-

Fitch Ratings said it assigned a BBB- rating to Votorantim Participacoes SA's proposed senior notes of about €500 million.

These notes will be issued through its subsidiary, Voto-Votorantim Ltd. and will be unconditionally and irrevocably guaranteed by the company and subsidiaries Votorantim Cimentos Brasil SA and Companhia Brasileira de Aluminio. The proceeds will be used to repay existing debt and general corporate purposes.

The ratings reflect the company's strong industrial business positions and high operating leverage, Fitch said.

These companies all operate with high operating leverage and their cash flow should rebound sharply during 2010 due to strong commodity prices, which should facilitate debt reduction, the agency said.

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