Moody’s lifts Mexichem to Baa3

Moody's Investors Service sad it upgraded Mexichem, SAB de CV's senior unsecured ratings to Baa3 from Ba1.

At the same time, the agency withdrew the company's Ba1/Aa3.mx corporate family ratings.

The outlook is stable.

"The upgrade reflects Mexichem's strong credit metrics and market position, its ample liquidity and comfortable debt maturity profile, and its adequate margins for the rating category coupled with the expectation that it will further benefit from (a) higher prices in fluorspar contracts in the next two to three years, (b) the estimates for higher prices for refrigerant gases in the U.S. from anti-dumping rulings against Chinese imports, and (c) the completion of Mexichem's joint-ventures with Pemex and OxyChem to secure its supply of VCM while taking advantage of high spreads associated with ethylene production," Moody’s vice president and senior analyst Alonso Sánchez said in a news release.

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