Alpek S.A.B. de C.V.'s Proposed Senior Unsecured Notes Of Up To $500 Million Rated 'BBB-'

MEXICO CITY (S&P Global Ratings) Sept. 4, 2019--S&P Global Ratings assigned today its 'BBB-' issue-level rating to Alpek S.A.B. de C.V.'s (BBB-/Stable/--) proposed 10-year 144 A/Reg. S senior unsecured notes of up to $500 million due 2029. We expect the company to use the proceeds mostly for refinancing its existing short-term bank debt maturities. The rating on the notes is the same as the issuer credit rating. The notes will benefit from upstream guarantees from some of Alpek's main operating subsidiaries. In our view, the proposed issuance will extend Alpek's debt maturity profile to an average term of about 4.5 years from 2.7 years as of the second quarter of 2019. This would shift the largest debt maturities to 2022,

...September 4, 2019 MEXICO CITY (S&P Global Ratings) Sept. 4, 2019--S&P Global Ratings assigned today its '###-' issue-level rating to Alpek S.A.B. de C.V.'s (###-/Stable/--) proposed 10-year 144 A/Reg. S senior unsecured notes of up to $500 million due 2029. We expect the company to use the proceeds mostly for refinancing its existing short-term bank debt maturities. The rating on the notes is the same as the issuer credit rating. The notes will benefit from upstream guarantees from some of Alpek's main operating subsidiaries. In our view, the proposed issuance will extend Alpek's debt maturity profile to an average term of about 4.5 years from 2.7 years as of the second quarter of 2019. This would shift the largest debt maturities to 2022, 2023 and 2029, related to its current bonds and the new issuance. Our '###-' issuer credit rating on Alpek reflects our assessment of its solid business position in the markets in which it operates, its leading polyester producer position in the Americas,...

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