Alpek S.A.B. de C.V.'s Proposed Senior Unsecured Notes For Up To $600 Million Rated 'BB+'

MEXICO CITY (S&P Global Ratings) Feb. 16, 2021--S&P Global Ratings today assigned its 'BB+' issue-level rating to Alpek S.A.B. de C.V.'s (Alpek; global scale: BB+/Stable/--) proposed senior unsecured notes for up to $600 million due 2031. The company plans to use the net proceeds mostly for refinancing existing debt. The notes will benefit from upstream guarantees from some of Alpek's main operating subsidiaries and will rank pari passu in priority of payment with Alpek's existing senior unsecured debt. The rating on the proposed notes is at the same level as our issuer credit rating on Alpek, reflecting our view that there's no significant subordination risk present in its capital structure, because debt at the subsidiaries' level represents about 5% of

...February 16, 2021 MEXICO CITY (S&P Global Ratings) Feb. 16, 2021--S&P Global Ratings today assigned its '##+' issue-level rating to Alpek S.A.B. de C.V.'s (Alpek; global scale: ##+/Stable/--) proposed senior unsecured notes for up to $600 million due 2031. The company plans to use the net proceeds mostly for refinancing existing debt. The notes will benefit from upstream guarantees from some of Alpek's main operating subsidiaries and will rank pari passu in priority of payment with Alpek's existing senior unsecured debt. The rating on the proposed notes is at the same level as our issuer credit rating on Alpek, reflecting our view that there's no significant subordination risk present in its capital structure, because debt at the subsidiaries' level represents about 5% of the company's total debt; well below our 50% threshold. In our view, the proposed issuance will enhance Alpek's debt maturity profile to an average term of about 7.0 years from about 4.4 years as of the end of 2020. This...

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