TEXT-S&P summary: Titan Cement Co. S.A.

Wed Nov 21, 2012 8:02am EST

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(The following statement was released by the rating agency)

Nov 21 -

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Summary analysis -- Titan Cement Co. S.A. ------------------------- 21-Nov-2012

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CREDIT RATING: BB-/Stable/B Country: Greece

Primary SIC: Cement, hydraulic

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Credit Rating History:

Local currency Foreign currency

11-May-2011 BB-/B BB-/B

04-Apr-2011 BB/B BB/B

05-Nov-2008 BB+/B BB+/B

24-Jul-2008 BBB-/A-3 BBB-/A-3

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Rationale

The ratings on Greece-based cement manufacturer Titan Cement Co. S.A. reflect Standard & Poor's Ratings Services' view of the group's exposure to the very weak credit quality of its home market, the Hellenic Republic (Greece; CCC/Negative/C). The ratings on Titan also reflect our view of the group's "fair" business risk profile. Our assessment takes into account the risks and uncertainties attached to operating in the domestic market, the exposure to high-risk North African markets that have seen recent political unrest, and to the persistent weakness in southeast European markets. These weaknesses are mitigated by the group's "adequate" liquidity, focus on deleveraging, consistent cash generation, and moderate long-term financial targets. In addition, the ratings take into account our assessment of Titan's financial risk profile as "aggressive".

In accordance with our criteria for nonsovereign ratings that exceed the ratings on European Economic and Monetary Union (eurozone) sovereigns, we cap the ratings on Titan at 'BB-' owing to what we deem to be Titan's "moderate" exposure to Greece.

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