...Fitch Ratings affirmed Alpek, S.A.B. de C.V.'s long-term, local- and foreign-currency Issuer Default Ratings (IDRs) and senior unsecured notes at `BBB¡' on Aug. 16, 2018. Concurrently, Fitch removed the Rating Watch Negative and assigned a Rating Outlook of Stable. The rating actions reflect better than expected operating cash flow generation, which has allowed it to fund some of its recent acquisitions with more internally generated cash flow than previously projected. The change in outlook also reflects Fitch's view that Alpek's business profile will emerge stronger after its acquisition of Petrobras's polyester assets in Brazil, the consummation of its joint acquisition of 2.3 million tons of polyester capacity in Corpus Christi, Texas, which is pending regulatory approval, and the normalization of Mossi & Ghisolfi's (M&G) Mexican polyethylene terephthalate (PET) operations in Altamira. The combination of stronger industry fundamentals, lower capex and dividend flexibility has allowed...
