Fitch places AA+(mex) rating on Cemex bonds

Fitch has assigned its AA+(mex) rating on Mexican cement giant Cemex's 5bn-peso (US$448mn) bond issue, Fitch said. At the same time, Fitch placed the same rating on a 2bn-peso, variable rate issue that matures after four years, as well as a 1.5bn-peso set rate issue maturing in seven years. The ratings reflect Fitch's belief that Cemex will assign enough free cash flow in 2005 to repay debts, after the debt-financed, US$5.8bn purchase of British cement group RMC went through in March. Cemex generated cash flow of nearly US$1.5bn in 2004 and estimates a similar result in 2005. The 2005 projected cash flow is supported by a favorable operating atmosphere in the majority of the markets where Cemex and RMC operate, Fitch said. To read Fitch's full report in Spanish, paste the following link into your browser: http://www.bnamericas.com/rc_search_detail.xsql?id_documento=66019&Tx_idioma=E