Bulletin: Elementia S.A.B. de C.V.'s Announced MXN1.5 Billion Capital Increase Will Continue To Support Its Growth Plans

MEXICO CITY (S&P Global Ratings) Oct. 8, 2018--S&P Global Ratings said today that Elementia S.A.B. de C.V.'s (Elementia: BB/Stable/--) announcement that it plans to get approval for a MXN1.5 billion capital increase would continue supporting the company's growth plans on a leverage neutral basis but won't change our view of its current rating. After closing the transaction, we expect Elementia to use the proceeds for general corporate purposes, including capital investments for expansion. We expect Elementia to deploy the proceeds over the next 12 to 24 months to expand its three business divisions, but primarily focusing on its cement business and in the region where it currently operates. During the last 12 months ended June 2018, Elementia's operating performance was

...MEXICO CITY (S&P Global Ratings) Oct. 8, 2018--S&P Global Ratings said today that Elementia S.A.B. de C.V.'s (Elementia: ##/Stable/--) announcement that it plans to get approval for a MXN1.5 billion capital increase would continue supporting the company's growth plans on a leverage neutral basis but won't change our view of its current rating. After closing the transaction, we expect Elementia to use the proceeds for general corporate purposes, including capital investments for expansion. We expect Elementia to deploy the proceeds over the next 12 to 24 months to expand its three business divisions, but primarily focusing on its cement business and in the region where it currently operates. During the last 12 months ended June 2018, Elementia's operating performance was affected by the unexpected halt at its South Carolina cement plant, changes in production technology, and a one-off charge for capacity rationalization and right-sizing at its Latin America building systems division. The...

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