Votorantim S.A. and Votorantim Cimentos Receive Investment Grade Ratings from Moody’s

Both the holding company and its portfolio company now have investment grade ratings from three major credit rating agencies: Moody's, S&P and Fitch Ratings.

The rating agency Moody's Investors Service assigned today an investment grade rating on a global scale to the holding company Votorantim S.A. and its portfolio company Votorantim Cimentos. Moody's upgraded the rating of both companies from Ba1 to Baa3, with a stable outlook.

As a result of today's announcement, Votorantim S.A. (VSA) and Votorantim Cimentos are now part of a select group of Brazilian companies with investment grade ratings from the three main credit rating agencies worldwide: Moody's, S&P Global Ratings and Fitch Ratings.

"This is a recognition of the strength and consistency of our results, both in Brazil and abroad. Our company's leverage is the lowest it has ever been for the past 13 years, and we are ready for new investment opportunities," said Sergio Malacrida, CFO of Votorantim S.A.

In its report, Moody's highlighted the deleveraging process conducted by the companies over the past few years as an important factor in the upgrade of their ratings. In March 2021, VSA's net leverage (measured by the net debt/EBITDA ratio) was 1.37x; in the same month, Votorantim Cimentos' net leverage was 1.98x. With regard to gross leverage (gross debt/EBITDA ratio), Votorantim Cimentos maintained a downward trend, from 6.5x in 2017 to 3.2x at the end of March 2021. Other aspects highlighted by Moody's include the evolution of credit metrics and the capital structure of the companies, combined with strong cash generation throughout the pandemic.

"This achievement is the result of our financial discipline, the execution of our strategy, and the work and dedication of the entire Votorantim Cimentos team," said Osvaldo Ayres Filho, Global CFO of Votorantim Cimentos.

Credit ratings are an assessment of the creditworthiness of borrowers–both companies and governments—and reflect the opinion of the agencies on their ability to fully meet their financial obligations within a specified period of time. Moody's rating scale ranges from Aaa to C, with Aaa being the highest and C the lowest. The agency considers companies with a rating of Baa3 or better investment-grade.

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