S&P said Thursday it had rated the senior unsecured notes, to be issued by Brazilian cement maker Votorantim Cimentos SA, at BBB.
The notes will be guaranteed by parent company Votorantim Participacoes SA and its subsidiary Votorantim Industrial SA.
The issue bears the same rating as the corporate credit rating on the parent, because of the guarantee it provides. Besides, Votorantim Cimentos generates the majority of the group’s cash flow and has low indebtedness.
The rating mirrors the group’s adequate business and financial profiles, leading market position, diversified metals portfolio and good liquidity, partly tempered by the high portion of its revenues being generated in Brazil and its aggressive growth strategy, S&P said.