Moody's rates Votorantim notes Baa3

Moody's Investors Service said it assigned a Baa3 foreign-currency rating to the proposed €500 million senior unsecured notes due 2017 to be issued by Voto - Votorantim Ltd. (Cayman Islands) and jointly and severally guaranteed by Votorantim and its subsidiaries Votorantim Cimentos Brasil SA and Companhia Brasileira de Aluminio.

The agency maintains Baa3 global scale and Aa1.br Brazilian national scale senior unsecured issuer ratings for Votorantim Participações SA and a Baa3 foreign-currency rating for the senior unsecured guaranteed notes issued by Voto - Votorantim Overseas Trading Operations III Ltd. (Cayman Islands).

The outlook is stable.

The proposed notes are part of Votorantim's liability-management strategy and will not increase the group's leverage because the proceeds will be used to refinance debt maturing in 2011 and 2012.

Moody's said the Baa3 issuer rating of Votorantim reflects the combination of the group's size as one of the largest Brazilian conglomerates with good business diversification and its cost-competitive operations based on high vertical integration of its operations that have supported above-industry average operating margins on a consolidated basis.

Although leverage is high for Votorantim's rating category, the company's liquidity position remains strong, the agency said. The debt-to-EBITDA ratio was 4.9 times at the end of 2009.

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