Fitch Brightens Petrotemex Outlook

Fitch has changed the outlook on Mexico-based Petrotemex’s BB+ rating to stable from negative to reflect the company’s increased cash generation and debt reduction in 2009. Petrotemex’s cashflow from operations for fiscal year 2009 was about $220m, up from $68m during 2008. The company’s total debt to Ebitda ratio for the last 12 months ended March 31 was 2.4x, an improvement from 3.3x during 2008, adds Fitch. Chemicals company Petrotemex is a subsidiary of Alfa, one of Mexico’s largest industrial conglomerates.