Fitch Ratings has assigned a ’BBB-’ rating to Votorantim Cimentos SA’s (VCSA) US$750m bonds due in 2041. These bonds have been fully and unconditionally guaranteed by Votorantim Participacoes SA (VPAR) and Votorantim Industrial SA (VID). Proceeds from this issuance will be used to refinance existing debt.
The revision in VPAR’s Outlook to Positive from Stable is a result of the strong performance of the company’s industrial group, VID, during 2010. The change also reflects the favorable near- and medium-term outlook for cement consumption in Brazil due to strong housing demand and major investments in infrastructure. Further factored into the Positive Outlooks are the expectation of strong results during 2011 and 2012 as a result of relatively high pulp and metals prices, as well as significant organic expansion activities by the company.