Cimento Tupi S.A. 'D' Ratings Affirmed, Recovery Ratings Withdrawn
- Brazil-based cement producer Cimento Tupi hasn't reached an agreement
with its creditors to finalize its debt restructuring.
- We're affirming our 'D' corporate credit and debt ratings on the company.
- At the same time, we are withdrawing the recovery ratings on Tupi's debt,
which we expect to reinstate once the company completes the negotiations
with creditors.
SAO PAULO (S&P Global Ratings) Jan. 22, 2018--S&P Global Ratings affirmed its
'D' global and national scale corporate credit ratings on Cimento Tupi S.A.,
at the same time affirming its 'D' global scale issue-level ratings on Cimento
Tupi's senior unsecured notes. We withdrew the recovery ratings on the
company's debt, until the debt renegotiation reaches a conclusion and the new
capital structure is defined.
The 'D' ratings on Tupi continue to reflect the company's failure to honor its
financial obligations in May 2015. The company is still in talks with its
creditors --primarily bondholders of the 2018 notes--in order to adjust its
capital structure and finalize the debt restructuring; however, no agreement
has been reached so far. The company is also struggling with the challenging
business environment for cement producers in Brazil, while aiming to divest
non-operational assets. We will reevaluate Cimento Tupi once the restructuring
process is completed, at which point we'll consider its revised capital
structure and operational capabilities.
