Fitch Raises Mexichem

Fitch has upgraded Mexichem’s rating to BBB from BBB minus, it says, based on a strong business and financial profile. The Mexican petrochemical producer has doubled in size since 2009, through organic growth and acquisitions. The agency calls Mexichem’s credit metrics “strong,” and expects net leverage will remain within the management’s 2.0x target. “Mexichem’s financial profile is underpinned by its recurring positive free cash flow and its strong business profile as a leading vertically integrated chemical and petrochemical company in Mexico, with a geographically diversified operating base and low cost structure,” Fitch says. Total debt to Ebitda for the 12 months ended September 30 was 2.5x and net debt to Ebitda 1.1x. The outlook is stable.