S&P affirms Vitro Envases

Standard & Poor's said it affirmed the rating on Vitro Envases Norteamierca SA de CV's 10¾% senior secured notes due 2011 at B+ following the reopening of the notes, whereby they were increased by $80 million for a total outstanding amount of $250 million.

S&P also affirmed its B+ local and foreign currency corporate credit ratings on Vitro Envases. The outlook remains negative.

S&P said the ratings on Vitro are constrained by its high financial leverage and the negative trend in profitability because of increased competition in the domestic market and the strength of the Mexican peso across Vitro's business lines.

The ratings are supported by the company's leading position in the flat glass, glass containers and glassware business in Mexico and by Vitro's export activities and international operations, which combined accounted for about 50% of total sales, according to S&P.

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