S&P downgrades Cemex rating on global slowdown

S&P downgrades Cemex rating on global slowdown
Published: 11 November 2011

Ratings agency Standard & Poor’s (S&P) has lowered its global rating for Cemex from B to B- and its national rating from mxBB+ to mxBB with a negative outlook.

The company will continue to experience a "weak financial performance" over the next two years due to worldwide macroeconomic conditions, S&P said in a report.

The economic downturn has directly affected the housing and infrastructure sectors in key markets for Cemex, mainly the US and Spain.

The cement firm has tight margins within its financing agreements, and will need to refinance debt that matures in late 2013 and 2014, the ratings agency said.

S&P has removed Cemex’s ratings from CreditWatch, where it placed them in September with negative implications.

Cemex’s third quarter results were slightly better than expected due to operational efficiencies and a reduction in costs, said the report. The company posted a net loss of US$822mn in the quarter.