...Rating Derivation Versus Peers Peer Comparison The high complexity and technological innovation of Nemak's aluminum castings have given it a very strong competitive position, allowing it to become a sole supplier to OEMs in 90% of the products it sells. Nemak's business profile compares well against Metalsa, S.A. de C.V's (BBB¡/Stable), as Metalsa has a less dominant position in its core businesses, and against Tupy S.A. (BB/Stable), which has much smaller scale. Tupy is a niche producer of iron engine blocks and heads predominantly used in commercial off-road vehicles and has less geographic diversification. Nemak's business profile is similar to that of European peer GKN Holdings Limited (BB+/Stable) in terms of competitive position, although GKN has a larger scale and a more diversified profile in terms of product segments, customers and geography of cash flow. Nemak has a strong competitive position and its focus on light vehicles, whose demand is considered more stable than heavily...
