Fitch affirms Holcim (Costa Rica) rating

Fitch affirms Holcim (Costa Rica) rating
Published: 06 December 2013

Fitch Ratings has affirmed it AAA(cri) rating with a stable outlook for Holcim (Costa Rica) and its subsidiaries, according to a report from the ratings agency.

The rating is attributed to Holcim 's strong market position in Costa Rica where it operates a 1.5Mta integrated cement plant, and strong generation of cash flow. Cemex is the only other cement producer in Costa Rica, with two plants and a 0.9Mta capacity.

As of June 30, Holcim (Costa Rica) generated an EBITDA of CRC27.3bn (US$54.8m), compared to a downward trend during 2011 and 2012.

The company also benefits from strategic and technical support from its majority shareholder Holcim Investments Spain, a wholly owned subsidiary of Holcim, Ltd.

The company's low leverage and favorable EBITDA margin also contribute to the rating, according to the report.