Fitch affirms Kimberly-Clark de Mexico

Fitch Ratings said it affirmed Kimberly-Clark de Mexico SAB de CV's (KCM) long-term local currency and foreign-currency issuer default ratings at A and long-term national scale rating at AAA(mex).

The outlook is stable.

Fitch said the ratings reflect the company’s leading market position, strong cash flow generation, solid capital structure and liquidity position, proven debt-payment track record, and partial ownership by Kimberly-Clark Corp. (KMB), rated A.

“The ratings also consider the challenging economic environment the company is facing due to some raw materials price increases and foreign exchange volatility in Mexico,” the agency said in a news release.

“The affirmation of the ratings and stable outlook incorporate Fitch's expectation that KCM will maintain gross leverage below 2.0x and net leverage below 1.5x in the short term and will gradually recover profitability margins.”

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