S&P affirms Votorantim Participações

Standard & Poor's said it affirmed its BBB- long-term corporate credit rating on Votorantim Participações SA.

The outlook is stable.

The agency said that the ratings reflect its broad business diversification and strong business fundamentals: long term growth prospects, sound market position, strong and growing export capabilities, low-cost position and, in most cases, vertical integration.

These positives are tempered by the company's ambitious growth plans, involving the expansion of existing projects and acquisitions, some increase in gross debt levels relative to cash flows and a mounting exposure to financial businesses, which present more volatility and credit risk than the average of its industrial portfolio, S&P said.

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