Fitch affirms Mexichem

Fitch Ratings said it affirmed Mexichem, SAB de CV's foreign-currency issuer default rating at BBB-, local-currency issuer default rating at BBB-, long-term national scale rating at AA(mex), $350 million senior notes due 2019 at BBB-, Ps. 2.5 million local certificados bursatiles due 2016 at AA(mex).

The outlook is stable.

The ratings are supported by the company's business profile as a leading vertically integrated chemical and petrochemical company in Mexico, with important market shares and presence in Latin America, United States and Japan, Fitch said.

The ratings also are supported by Mexichem's competitive cost structure and solid financial profile, characterized by positive free cash flow generation in recent years, the agency said.

The ratings also consider Mexichem's aggressive growth strategy through acquisitions and green field projects and strong competition in all of the markets where it operates, Fitch said.

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