Moody's Investor Service upgrades Votorantim SA and Votorantim Cimentos

Moody's Investor Service upgrades Votorantim SA and Votorantim Cimentos
21 June 2021


Moody’s Investors Service has assigned an investment grade rating on a global scale to the holding company Votorantim SA and its portfolio company Votorantim Cimentos. Moody’s upgraded the rating of both companies from Ba1 to Baa3, with a stable outlook.

 “This is a recognition of the strength and consistency of our results, both in Brazil and abroad. Our company’s leverage is the lowest it has ever been for the past 13 years, and we are ready for new investment opportunities,” said Sergio Malacrida, CFO of Votorantim SA.

In its report, Moody’s highlighted the deleveraging process conducted by the companies over the past few years as an important factor in the upgrade of their ratings. In March 2021 VSA’s net leverage (measured by the net debt/EBITDA ratio) was 1.37x; in the same month, Votorantim Cimentos’ net leverage was 1.98x. 

For gross leverage (gross debt/EBITDA ratio), Votorantim Cimentos maintained a downward trend, from 6.5x in 2017 to 3.2x at the end of March 2021. Other aspects highlighted by Moody’s include the evolution of credit metrics and the capital structure of the companies, combined with strong cash generation throughout the pandemic. 

“This achievement is the result of our financial discipline, the execution of our strategy, and the work and dedication of the entire Votorantim Cimentos team,” said Osvaldo Ayres Filho, global CFO of Votorantim Cimentos.

Published under Cement News