Cemex would have investment grade until 2020

Cemex would have investment grade until 2020
19 September 2018

The strategy to reduce the leverage level would allow Cemex to recover its investment grade in the first part of 2020, according to Citibanamex projections.

"We expect the company to end 2018 and 2019 with a net debt/EBITDA ratio of 3.8 and 3.1 times, respectively. For the first half of 2020 the indicator would reach 3.0 times, excluding the sale of assets,” explains an analysis of the financial institution.

However, the sale of assets would accelerate the process to obtain the investment grade, which was withdrawn by the credit rating agencies Standard & Poor's (S&P) and Fitch Ratings in 2009, reports CE Noticias Financieras.

The cement producer plans to reduce some US$3.5bn of its debt by 2020 to accelerate the path to the upgrade. At the end of the 2Q18, total debt, including perpetual notes, was US$10.89m.
"We remain committed to returning to investment grade, but now we hope to get there sooner. We have made significant progress on this front, "the company's CEO, Fernando González, explained to analysts at the time.

Since the end of 2013, Cemex has reduced its debt, going from US17.5bn to US$10.9bn dollars at the end of the 2Q18, a reduction of approximately 38 per cent.

Published under Cement News