Cemex has recently received an upgrade from Fitch Ratings from a B+ issuer default rating (IDR) to BB-.
“We are pleased with the upgrade received from Fitch Ratings, which is in line with our plan of returning to an investment grade capital structure,” said Fernando A. Gonzalez, Cemex’s Chief Executive Officer.
According to Fitch Ratings, “the upgrade is supported by the strengthening of Cemex’s capital structure during the past two years due to the conversion of about US$820 million of convertible bonds to equity plus the refinancing of around US$8.6 billion of debt that has lowered the company’s annual interest expense by approximately $200 million per year.”
Additional changes by Fitch Ratings
In addition to the upgrade of Cemex’s IDRs, Fitch has also upgraded the national scale to A- from BBB and the short-term national scale rating to F2 from F3. This will, therefore, give Cemex the potential to access the institutional Mexican bond market.
Adapted from press release by Katherine Guenioui