...Nemak, S.A.B. de C.V.'s (Nemak) increasing product and geographic diversification, improving financial structure and implicit parent support from Alfa, S.A.B. de C.V. (BBB) lead to investment-grade characteristics. These factors complement Nemak's strong technological competencies, which have given it a very strong competitive position in North America and Europe. Nemak's ratings are constrained by the ongoing negotiations of NAFTA, which threaten the continuity of the North American auto industry. Satisfactory resolution of ongoing NAFTA talks could result in a rating upgrade. Conversely, an unfavorable outcome from negotiations that disrupts North America's intricate supply chains would lead to lower industry profitability and likely set back Nemak's financial improvements, which could cause Fitch Ratings to revise the Outlook to Stable....
