S&P Upgrades GCC’s Long-Term Corporate Credit Rating to BB+

CHIHUAHUA, Mexico, May 21, 2018 (GLOBE NEWSWIRE) -- Grupo Cementos de Chihuahua, S.A.B. de C.V., or GCC, (BMV:GCC*) announces that S&P Global Ratings (S&P) today raised its long-term corporate rating for GCC to BB+ from BB, with a stable outlook.  S&P also raised the rating on GCC’s senior unsecured notes due 2024 to BB+.

Luis Carlos Arias, GCC’s Chief Financial Officer, said, “We are pleased with S&P’s ratings upgrade.  GCC’s performance demonstrates our strong market position, effective cost controls, and favorable outlook, particularly in our U.S. markets.  We have a clear business strategy to continue to build our business in the ‘center cut’ of North America, from northern Mexico to the U.S.-Canada border.”  

In their ratings decision, S&P cited GCC’s consistent track record of solid operating performance and continued deleverage because of its disciplined investment strategy, focus on operating efficiencies and cash generation, debt reduction, and prudent financial policy. 

Today’s rating action is S&P’s second upgrade in less than 12 months.

About GCC

GCC is a leading supplier of cement, concrete, aggregates, and construction‐related services in the United States and Mexico, with an annual cement production capacity of 5.1 million metric tons. Founded in 1941, the Company’s shares are listed on the Mexican Stock Exchange under the ticker symbol GCC.

Forward Looking Statements

This press release may contain forward-looking statements. All statements that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “intend,” “project” and similar expressions are generally intended to identify forward-looking statements. These statements are subject to risks and uncertainties including, among others, changes in macroeconomic, political, governmental or business conditions in the markets where GCC operates; changes in interest rates, inflation rates and currency exchange rates; performance of the construction industry; pricing, business strategy, and other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from the beliefs, projections, and estimates described herein. GCC assumes no obligation to update the information contained in this press release.

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