...OEMs Expanding In Mexico: Mexican auto suppliers (MAS) have benefited from heavy investments in Mexico by European and Asian automotive original equipment manufacturers (OEMs), which have gravitated to the country due to positive demand trends in North America. The main competitive advantages that OEMs have found in Mexico are skilled, low-cost labor, transportation and logistics savings, and favorable trade agreements. About USD4 billion of investments in Mexico were announced by the leading auto manufacturers in 2014. Increased Diversification Is Credit Positive: MAS have healthy operating cash flow due to strong vehicle demand. This has enabled them to expand their geographic, customer and product portfolio diversification. Consequently, several MAS now have a presence in Europe and Asia and have strengthened their customer relationships, particularly with American and European OEMs. Stable Credit Metrics: Fitch Ratings expects stable credit metrics in 2015 supported by modest light...
