The rating agency Standard & Poor’s (S&P) improved Cemex’s credit rating and, with this, returned it to investment grade.
The firm gave the Mexican company a global scale rating of BBB-, moving Cemex one notch into investment grade territory after more than a decade with junk bonds.
The improvement was due to factors such as Cemex’s commercial and leverage strategy, its solid financial and operating performance as well as its flexible capital allocation.
“Achieving an investment grade credit rating from S&P is a very significant achievement. While we achieved record results last year, this rating is a recognition of the successful execution of our medium-term strategy and consistent financial performance over several years,” said Fernando González Olivieri, CEO of Cemex.
The company highlighted that in 2023 its operating flow grew 25 percent at an annual rate, while free cash flow more than doubled.
S&P also raised Cemex’s national scale credit rating to mxAA+ from mxAA.
Cemex has sold assets and cut debt over the years in a bid to regain the coveted credit rating, and executives said in previous quarters that a rating upgrade was expected early this year.
S&P added that Cemex’s priorities for this year and next should include increasing underlying profits through margin expansion and acquisitions.
With information from Reuters
2024-03-14 00:05:46
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