Fitch lifts Petrotemex from junk

Fitch Ratings upgraded Grupo Petrotemex, SA de CV's long-term and local-currency issuer default rating to BBB- from BB+.

The agency upgraded Petrotemex's $75 million privately placed senior notes due 2012 (outstanding balance of $11 million) to BBB- from BB+ and its $275 million senior notes due 2014 (outstanding balance of $121 million) to BBB- from BB+.

The outlook is stable.

The agency upgraded DAK Americas, LLC's long-term issuer default rating to BBB- from BB+.

The upgrades reflect Petrotemex's earlier than anticipated deleverage process and expectations that the company will maintain a net debt-to-EBITDA ratio around 1.5x over the long term, in line with its parent's financial target, according to the agency.

Petrotemex ratings are supported by the company's strong domestic and global competitive position, its long-term supply and customer arrangements and geographically diversified operating base, the agency said.

The resilience of the company's client base, which consists of many food, beverage and personal care products, to economic downturns is also factored into the company's ratings, the agency noted.

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