Fitch upgrades Vitro, rates notes BB+

Fitch Ratings said in a corrected rating that it upgraded Vitro, SAB de CV's local- and foreign-currency issuer default ratings to B from CCC, $225 million senior unsecured notes due 2013 to B+/RR3 from CCC/RR4, national scale rating to BB+(mex) from BB(mex) and Ps. 2.5 billion senior secured certificates to BB+(mex) from BB(mex.)

The agency also assigned a BB+/RR3 rating to Vitro's proposed $1 billion notes offering, which includes $700 million 9 1/8% senior unsecured notes due 2017 and callable after 2012 and $300 million 8 5/8% non-callable senior unsecured notes due 2012.

The outlook is stable.

Proceeds from the notes will be applied to debt repayment and corporate purposes.

The agency said the upgrade reflect the improvement in the company's capital structure and debt profile, which significantly lowers refinancing risk and eliminates structural subordination following the takeout of secured operating subsidiary debt. The rating action also considers the improvement in Vitro's operations, supported by the strong performance of the glass containers division over the past year.

For the 12 months ended Sept. 30, the total debt-to-EBITDA ratio improved to 3.3x from 4.2x.

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