Standard & Poor’s (S&P) may downgrade the credit rating on Portuguese cement producer Cimpor, if Brazilian steel production group Companhia Siderurgica Nacional, or CSN, completes successfully its takeover bid on the company.

The downward revision will reflect the weak credit profile of CSN, S&P said.

The rating on Cimpor, which currently stands at BBB-, was put under credit watch with "negative" outlook. The current rating of Cimpor is supported by high operating margins and solid cash flow.

CSN, in turn, is rated BB+ by S&P -- lower than Cimpor. The outlook on

CSN is also "negative".
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