Fitch Ratings has affirmed the Issuer Default Rating (IDR) and outstanding debt ratings of Camargo Correa (Camargo) as follows:

--Foreign currency IDR 'BB';

--Local currency IDR 'BB';

--National Scale rating 'AA-(bra)'.

CCSA Finance Limited

--US$250 million senior unsecured bonds due 2016 'BB'

CCSA Finance Limited is a special-purpose vehicle wholly-owned by Camargo and incorporated in the Cayman Islands), unconditionally guaranteed by Camargo. Fitch has also revised Camargo's Rating Outlook to Positive from Stable.

The Outlook revision to Positive reflects the improved Brazilian economic environment which has favorably affected much of Camargo's businesses, particularly in its cement, engineering and construction businesses. Additionally, it reflects increased diversity of revenues and cash flows across industry and geography, lower leverage and better debt-service coverage ratios. The Positive Outlook also incorporate Fitch's expectation of considerable margin improvement in the next few years mostly reflecting new E&C (Engineering and Construction) projects to come on line at much better margins, and cost savings at its textile business. Nevertheless, the affect of its aggressive growth strategy on credit protection measures remains a concern and has been incorporated into the ratings.

Camargo's ratings are supported by benefits from its diversified portfolio of operations, adequate market position in the industries in which it participates, and strong liquidity relative to leverage, which partially mitigates exposure to domestic economic risks. Camargo's ratings incorporate the high correlation of its core businesses of cement, engineering and construction, textiles and footwear with general economic conditions of countries, in which it operates in, but especially Brazil and Argentina. The ratings take into consideration high leverage in some of its individual business segments and a very aggressive growth strategy.

Camargo is seeking to strengthen its growth over the next several years and further position itself among the top five industrial private conglomerates in Brazil, further strengthening its market position. Some of this growth will be organic, particularly in the footwear and engineering and construction segments, which are planning to expand their market base internationally. In the footwear segment, much of the growth is planned through acquisitions while the cement, textile and infrastructure business is expected to grow organically. Camargo does not expect to enter any new industries in the near future.