Fitch might cut Elementia

Fitch Ratings said it placed Elementia, SAB de CV's foreign and local currency long-term issuer default ratings of BB+ on rating watch negative.

The action follows Elementia's proposal to spin-off all of the assets that comprise the metals and building systems segments into a newly-created spun-off entity, the agency said.

The cement segment would remain part of Elementia.

“Should the spin-off be completed as planned, Elementia's credit profile would likely be inconsistent with a BB+ rating as pure cement regional companies rated at this level have stronger business profiles, larger scale and more robust credit metrics than Elementia, which currently benefits from broader product and geographic diversification with all its segments,” Fitch said in a news release.

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