CEMEX has announced that Fitch Ratings (Fitch) has upgraded the company’s corporate credit rating in its global scale to BB from BB-.
According to Fitch, the upgrade reflects the company’s strengthening capital structure, due to US$5 billion in debt reduction in the last three years, primarily due to robust free cash flow generation and asset sales. Other considerations for the upgrade are CEMEX’s strong business positions, as well as the refinancing of about US$7 billion of debt, which has lowered interest payments by about US$200 million/year.
In addition to the upgrade in its global scale, Fitch also upgraded the company’s corporate credit rating in its national scale to A+(mex) from A(mex). Its short-term national scale credit rating was affirmed at F1+(mex). The rating outlook is stable. Fitch also upgraded CEMEX’s senior secured notes to BB from BB-, including CEMEX’s recent €400 million senior secured notes due 2026.
“We are pleased with Fitch’s recognition of our sustained an disciplined track record of deleveraging and improvement of our capital structure,” said Jose Antonio Gonzalez, CEMEX’s Chief Financial Officer. “We remain fully committed towards the goal of achieving an investment grade capital structure.”