Mexico-based building materials company, Elementia, recently announced that it signed a letter of intent with Cementos Portland Valderrivas S.A. to acquire 55% of Giant Cement Holding Inc. We're placing our 'BB+' long-term corporate credit and issue-level ratings on Elementia on CreditWatch with negative implications. The CreditWatch listing reflects uncertainties about the specifics of the transaction, including the final financing structure, the absence of financial information on Giant Cement Holding, and how it could impact Elementia's credit measures, capital structure, and recovery prospects in regards to its $425 million senior unsecured notes due 2025 if the transaction is completed. We plan to resolve the CreditWatch listing once the acquisition is completed, which we expect to occur before the end of 2016,
