TEXT-S&P rates CEMEX Finance
(The following statement was released by the rating agency)
Oct 4 - Standard & Poor's Ratings Services assigned its 'B-' issue-level rating and a recovery rating of '3' to CEMEX Finance LLC's proposed 10-year benchmark dollar bonds. The recovery rating of '3' indicates that lenders can expect substantial (50% to 70%) recovery in the event of a payment default.
CEMEX Finance LLC is a wholly-owned subsidiary of CEMEX S.A.B. de C.V.(CEMEX; B-/Watch Neg/--) and is incorporated for an unlimited period of time as a private limited liability company under the laws of Delaware. The bonds will benefit from a security package on the same terms as in all other senior capital markets debt. The security package includes the full and unconditional guarantee, on a joint and several basis and on a general senior basis, by CEMEX Mexico, S.A. de C.V., CEMEX Espana, S.A., CEMEX Corp., New Sunward Holding B.V., and CEMEX's other subsidiaries.
CEMEX intends to use the net proceeds from the offering to repay its debt under its Facilities Agreement. If the company is able to successfully issue the proposed bonds and raise most of the funds required for the next $1 billion payment under the Facilities Agreement due March 2013, we will soon consider resolving the CreditWatch listing on all the ratings on CEMEX and its key operating subsidiaries--CEMEX Espana, CEMEX Mexico, CEMEX Corp., and CEMEX Inc.-where we placed them on July 3, 2012. For the latest credit rationale on CEMEX, please see "Cemex 'B-' Rating Placed On CreditWatch Negative On Higher Short-Term Risk From Proposed Debt Refinancing," published July 3.
Related Criteria And Research
-- Cemex 'B-' Rating Placed On CreditWatch Negative On Higher Short-Term Risk From Proposed Debt Refinancing, July 3, 2012
-- Corporate Ratings Criteria 2008, April 15, 2008
RATINGS LIST CEMEX S.A.B. de C.V. Corporate credit rating B-/Watch Neg/-- CEMEX Finance LLC
10-year benchmark dollar bonds B-/Watch Neg
Recovery rating 3
(Caryn Trokie, New York Ratings Unit)