Fitch Ratings Colombia reaffirmed Cementos’ Argos’ rating of AA+ (high level) with a stable outlook for the bonds the company issued in 2009, despite the firm posting a negative performance over the last year. Revenues fell 13% because of lower prices especially in the US but in its domestic market of Colombia cement volumes rose 7% last year whilst concrete volumes soared 40%.
Back in 2006, the production and sale of concrete in the US represented 49% of Argos’ EBITDA. Four years later and the EBITDA contribution made by the US is down to just 1% at Argos, its EBITDA last year having come to COP539.182bn.
The recovery of the US concrete market is not expected to occur before 2013 and as such Argos´ focus remains on Colombia.