Fitch Puts Camargo Correa on Positive Outlook

Fitch has revised Brazilian industrial conglomerate Camargo Correa’s ratings outlook to positive from stable and has affirmed the company’s rating at BB. The agency also affirmed $250m senior unsecured bonds due 2016 at BB from Camargo Correa’s subsidiary CCSA Finance Limited. The move reflects the improved Brazilian economic environment that has favorably affected much of Camargo’s businesses, particularly in its cement, engineering and construction businesses, says the agency. “Additionally, it reflects increased diversity of revenues and cash flows across industry and geography, lower leverage and better debt-service coverage ratios,” Fitch adds. “Nevertheless, the effect of its aggressive growth strategy on credit protection measures remains a concern and has been incorporated into the ratings,” adds Fitch.