Fitch could lower Alpek

Fitch Ratings said it placed the ratings of Alpek, SAB de CV on Rating Watch Negative.

Fitch said the negative watch reflects increased pressure on Alpek's capital structure due its acquisition of Petroleo Brasileiro SA's polyester assets in Brazil for $385 million at a time when its cash flow is under pressure due to depressed Polyethylene Terephthalate (PET) margins in the U.S., which is one of its largest regions.

This acquisition, which is subject to shareholder and regulatory approval, combined with lower EBITDA would increase the company's net leverage to 3.2 times in 2017 from 1.6 times in 2016.

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