Grupo Mexico, AMC Get Upgraded

Fitch has upgraded the ratings of diversified conglomerate Grupo Mexico to BBB from BBB minus. The outlook is stable. The upgrade reflects the resolutions in the company’s favor of the five-year long Asarco bankruptcy proceedings, which ended with Grupo Mexico receiving full ownership with no legacy liabilities, the resolution of a labor strike at its Cananea mine and the likely merger of Ferromex and Ferrosur. For the last 12 months to September 2010, Grupo Mexico generated Ebitda of $3.2bn, with positive free cash flow of $593m after capital expenditures and dividends. In terms of liquidity, consolidated cash and marketable securities of $3.1bn covers impending consolidated debt maturities at the subsidiary levels up to 2014. On a standalone gross debt basis, Grupo Mexico currently holds $10m of debt, Fitch says.