Standard & Poor's Ratings Services affirmed its ratings, including the 'B-' global scale and 'mxBB/mxB' national scale rating long-term corporate credit ratings, on Cemex.
S&P’s ratings on Cemex and its key subsidiaries – Cemex Inc., Cemex Mexico, and Cemex Espana--are constrained by its "highly leveraged" financial risk profile, as our criteria define it, reflecting the company's high debt and "less-than-adequate" liquidity position. The ratings also reflect the relatively high concentration of its cash flow generation in a few key operating markets despite geographic diversification.
These factors are partially mitigated by the company's "satisfactory" business risk profile based on the group's leading position in the global cement, concrete, aggregates, and ready-mix businesses; and its operating efficiency. S&P have equalised the ratings on Cemex Mexico, Cemex Inc, and Cemex Espana because of the strategic importance of each of these subsidiaries to the group.
The outlooks remain negative, reflecting S&P’s belief that slow global economic activity and cement demand growth in the major markets where Cemex operates will continue to pressure the company's financial performance and key credit metrics over the next 12 to 18 months.
