Fitch gives BBB to Mexichem notes

Fitch Ratings said it assigned a BBB(EXP) rating to Mexichem, SAB de CV's roughly $1.1 billion senior unsecured notes.

The new notes will rank pari pasu with Mexichem's existing unsecured debt.

Net proceeds will be used to repay existing debt and finance the acquisition of Netafim Ltd., as well as for other general corporate purposes.

“The ratings reflect Mexichem's geographically diversified operating base and strong business position in polyvinyl chloride (PVC) pipes throughout Latin America and Europe, as well as its strong position in fluorspar globally,” Fitch said in a news release.

“The company's financial profile is underpinned by high profitability and strong cash flow generation. Further factored into Mexichem's ratings are its strong liquidity position and manageable debt amortization schedule.

“The ratings are tempered by the company's exposure to volatile industries such as infrastructure and construction,” the agency added in the release.

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