S&P Rewards Cemex's Efforts
- Standard and Poor's has upgraded Cemex's credit ratings, reflecting its efforts to reduce leverage and improve its financial structure.
- The improved ratings result from Cemex's commitment to reducing debt, its successful management of financial risks, and its favorable debt maturity profile.
By: SiiLA News
As a result of Cemex's strategy to reduce its leverage and improve its financial structure in recent years, Standard and Poor's Global Ratings has upgraded the company's ratings.
"S&P has raised Cemex's global credit ratings to 'BB+' from 'BB', and its long-term national scale ratings to 'mxAA-' from 'mxA', and short-term ratings to 'mxA-1+' from 'mxA-1'," said Gerardo Cevallos, an analyst at Vector. "The rating on the company's unsecured senior debt has also been raised to 'BB+' from 'BB', and the perpetual bond rating to 'B+' from 'B', while the recovery rating on the senior debt remains at '3'," he added.
"Thanks to Cemex's commitment to reducing its leverage, its debt-to-EBITDA ratio continues to gradually decline towards 3 times," noted the rating agency. The current debt maturity profile significantly reduces Cemex's exposure to short-term risks, particularly in the current restricted financial conditions.This rating upgrade reflects Cemex's solid debt management strategy and its efforts to strengthen its financial position to better navigate market challenges.
Standard and Poor's recognition of Cemex's commitment and success in debt management and financial structure improvement is a testament to the company's continued efforts to strengthen its financial standing.
