Moody's assigns Orbia notes Baa3

Moody's Investors Service said it assigned Baa3 ratings to Orbia Advance Corp., SAB de CV's proposed senior unsecured notes. Orbia will issue the notes in two tranches with tenors of five and 10 years, respectively. Orbia's Baa3 ratings remain unchanged.

The proceeds will be used to refinance debt and will not hurt the company's debt protection metrics, the agency said.

“Orbia's Baa3 ratings reflects its adequate credit metrics and market position, ample liquidity and comfortable long-term debt-maturity profile,” said Alonso Sanchez, a Moody’s vice president and senior analyst, in a press release.

“The rating also incorporates the company's adequate profit margin for the rating category benefited from its vertical integration into ethylene and fluorspar that reduced costs substantially; and the benefits from its growth –– organic and through acquisitions — in high-margin value-added businesses," added Sanchez.

The outlook is stable.

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