Fitch cuts Kimberly-Clark de Mexico

Fitch Ratings said it downgraded to A- from A the foreign-currency issuer default rating of Kimberly-Clark de Mexico, SAB de CV and its senior unsecured rating on 8 7/8% senior notes due 2009. Fitch affirmed the local-currency issuer default rating at A and its long-term national scale rating, Ps. 750 million unsecured certificados bursatiles due 2010, its Ps. 1.25 billion unsecured certificados bursatiles due 2013 and its Ps. 2.5 billion unsecured certificados bursatiles due 2017 at AAA(mex).

The outlook is stable.

The downgrade of the foreign-currency issuer default rating follows Fitch's recent downgrade of Kimberly-Clark Corp.'s long-term issuer default rating to A from AA. The downgrade reflects the weakened support of the company in the event the Mexican government imposes exchange controls that would prevent or impede the private sector's ability to convert local currency into foreign currency or to transfer hard currency abroad, the agency said.

The local-currency issuer default rating reflects the company's dominant business position in Mexico, its stable cash flows and strong financial profile, Fitch said.

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