Research Update: Fortaleza Materiales 'BB-' Ratings Affirmed On Steady Performance And Credit Metrics, Outlook Remains Stable - S&P Global Ratings’ Credit Research

Research Update: Fortaleza Materiales 'BB-' Ratings Affirmed On Steady Performance And Credit Metrics, Outlook Remains Stable

Research Update: Fortaleza Materiales 'BB-' Ratings Affirmed On Steady Performance And Credit Metrics, Outlook Remains Stable - S&P Global Ratings’ Credit Research
Research Update: Fortaleza Materiales 'BB-' Ratings Affirmed On Steady Performance And Credit Metrics, Outlook Remains Stable
Published Oct 19, 2021
7 pages (3113 words) — Published Oct 19, 2021
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Mexico-based cement producer, Fortaleza Materiales S.A.B. de C.V. (Fortaleza; formerly known as Elementia S.A.B. de C.V.), recently completed the spin-off of its metals and building systems divisions into a new company, Elementia Materiales S.A.B. de C.V. (Elemat). Due to the currently high demand for cement and its derivatives, we estimate the company's cement revenue will grow close to 10% in 2021 and 5% in 2022, while cement EBITDA margins would remain at 27%-28%. Additionally, we expect low financing needs, allowing Fortaleza to maintain credit metrics in line with the current rating. On Oct. 19, 2021, S&P Global Ratings affirmed its 'BB-' issuer credit rating on Fortaleza. The stable outlook reflects our view that Fortaleza will maintain solid operating and financial

  
Brief Excerpt:

...- Mexico-based cement producer, Fortaleza Materiales S.A.B. de C.V. (Fortaleza; formerly known as Elementia S.A.B. de C.V.), recently completed the spin-off of its metals and building systems divisions into a new company, Elementia Materiales S.A.B. de C.V. (Elemat). - Due to the currently high demand for cement and its derivatives, we estimate the company's cement revenue will grow close to 10% in 2021 and 5% in 2022, while cement EBITDA margins would remain at 27%-28%. Additionally, we expect low financing needs, allowing Fortaleza to maintain credit metrics in line with the current rating. - On Oct. 19, 2021, S&P Global Ratings affirmed its '##-' issuer credit rating on Fortaleza. - The stable outlook reflects our view that Fortaleza will maintain solid operating and financial performance at its cement operations. This should result in net debt to EBITDA and free operating cash flow (FOCF) to debt of 2.0x-3.0x and 10%-15%, respectively, for the next 12 months....

  
Report Type:

Research Update

Ticker
3255475Z@MM
Issuer
GICS
Construction Materials (15102010)
Sector
Global Issuers
Country
Region
Latin America
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Fortaleza Materiales 'BB-' Ratings Affirmed On Steady Performance And Credit Metrics, Outlook Remains Stable" Oct 19, 2021. Alacra Store. Nov 30, 2021. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Fortaleza-Materiales-BB-Ratings-Affirmed-On-Steady-Performance-And-Credit-Metrics-Outlook-Remains-Stable-2740592>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Fortaleza Materiales 'BB-' Ratings Affirmed On Steady Performance And Credit Metrics, Outlook Remains Stable Oct 19, 2021. New York, NY: Alacra Store. Retrieved Nov 30, 2021 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Fortaleza-Materiales-BB-Ratings-Affirmed-On-Steady-Performance-And-Credit-Metrics-Outlook-Remains-Stable-2740592>
  
US$ 225.00
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