As someone who lived thru a couple of credit crunch debacles …. i am sensitive to credit ratings and the risk of a company’s demise (bad credit, too much credit, stupid debt capital plans). One of my aggressive speculation companies that i have held for months at a significant loss, CX, just had their credit rating changed.
“According to Fitch, the upgrade reflects the strengthening of CEMEX’s capital structure due to US$5 billion in debt reduction in the last three years, primarily due to robust free cash flow generation and asset sales. Other considerations for the upgrade are CEMEX’s strong business positions as well as the refinancing of about US$7 billion of debt, which has lowered interest payments by about US$200 million per year. “
The key for me … “lowered interest payments by about US$200 million per year.”
This is one of the few companies that i currently hold that do not pay substantial dividends (like 4 and the other 3 are CA weed companies) . … I also have an emotional attachment to Mexico which can be an investor’s bane, but this news is welcome! Unclear if i will double down and lower my cost basis – hard to rationalize without dividends, but this makes things easier.