Yahoo Finance will soon be upgrading our Conversations message board platform to provide a better experience for our users. Only comments published since April 21, 2021 will be visible on Yahoo Finance after the upgrade. If you wish to download and save any of your older comments, please submit a request via the Privacy Dashboard by no later than Aug. 15, 2022.
The company’s aggregates sales in Germany are expected to double with the acquisition, Cemex said in a statement, and increase capacity to serve major cities in Poland and the Czech Republic as well as Berlin.
Published by Sol Klappholz, Editorial Assistant
World Cement, Tuesday, 14 June 2022 08:54
Fitch Ratings has upgraded the foreign and local currency Issuer Default Ratings (IDRs) of CEMEX, S.A.B. de C.V. (CEMEX) to 'BB+' from 'BB', its senior unsecured notes to 'BB+' from 'BB', and its subordinated hybrid issuance to 'BB-' from 'B+'. Cemex's National Long-Term rating is being upgraded to 'AA-(mex)' from 'A+(mex)', and its National Short-Term rating is affirmed at 'F1'. The Rating Outlook is Stable.
The upgrade reflects CEMEX's ongoing stronger operating performance which along with asset sales have supported effective debt reduction since late 2019. The company has been also improving its debt profile, in terms of maturity, collateral basis and financial costs which translate to better financial flexibility. Fitch expects Cemex to solidly maintain credit metrics below 3.5x in the next 2 – 3 years while continuing to invest to optimise its portfolio, enhance its business position and advance on its sustainability agenda.
KEY RATING DRIVERS
Declining Debt Burden: Cemex's adjusted net debt has been showing a downward trend as it declined to USD7.9 billion in 2021 from USD9.4 billion in 2020 and USD10.2 billion in 2019. Debt reduction in 2021 was primarily driven by the sale of carbon credits for approximately USD550 million, FCF and USD500 million of equity credit from hybrid security issued in June 2021. Fitch expects Cemex to solidly maintain net debt/EBITDA ratios below 3.5x in the next 2-3 years, with net leverage projected to be 3.1x in 2022 and 2.8x in 2023.
Racy Sidhu, the chairman of Concrete BC and a managing partner YAAT Ready Mix Concrete, explained the shortage stems from short term and long-term challenges.