Moody’s rates Mexichem notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Mexichem, SAB de CV's proposed up to $1.12 billion senior unsecured notes.

The outlook is stable.

Proceeds will be used to finance a portion of Mexichem's acquisition of an 80% stake in Netafim, Ltd. and general corporate purposes.

"The Baa3 rating is supported by Mexichem's strong credit metrics and market position, its ample liquidity and comfortable debt maturity profile. It also incorporates the company´s adequate margins for the rating category coupled with the expectation that it will further benefit from (a) higher prices in fluorspar contracts, (b) higher polyvinyl chloride prices, (c) start of production of the ethylene cracker, and (c) the benefits from its acquisitions of high margin, value-added businesses," Moody’s vice president Alonso Sanchez said in a news release.

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