Moody's rates Votorantim Cimentos notes Baa3

Moody's Investors Service said it assigned a Baa3 global scale issuer rating and Aa1.br national scale rating to Votorantim Industrial SA and a Baa3 foreign-currency rating to the $500 million senior unsecured guaranteed notes due 2041 to be issued by Votorantim Cimentos SA and fully and unconditionally guaranteed by Votorantim Participacoes SA and Votorantim Industrial.

The agency also said it affirmed Votorantim Participacoes' senior unsecured issuer rating at Baa3 and Brazilian national scale rating at Aa1.br, along with Voto-Votorantim Overseas Trading Operations III Ltd.'s $208 million senior unsecured guaranteed notes due 2014 at Baa3 and Votorantim Cimentos' €750 million senior unsecured guaranteed notes due 2017 at Baa3. Companhia Brasileira de Aluminio's $750 million senior unsecured guaranteed notes due 2021 also were affirmed at Baa3.

The outlook is stable.

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 entirely used to refinance existing debt, consequently improving its debt maturity profile, Moody's said.

The rating considers Votorantim's low level of secured debt on a consolidated basis and is not constrained by Brazil's Baa2 foreign-currency country ceiling, the agency said.

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