Bulletin: Alpek Has Cash To Cover Dividend Payment To Parent With No Impact On Expected Credit Metrics

This report does not constitute a rating action. MEXICO CITY (S&P Global Ratings) Sept. 10, 2024--Alpek S.A.B. de C.V. has sufficient cash on hand for a $132 million dividend distribution to holding company Alfa S.A.B. de C.V. and minority interest shareholders. The distribution is in line with the leverage metrics in our base-case scenario for Alpek. It will not pressure the company's liquidity position, nor have rating implications. On Sept. 10, 2024, Alpek announced an extraordinary dividend payment, signaling its commitment to support the parent company's deleveraging. In our last review of Alpek (see Alpek S.A.B. de C.V. , published on RatingsDirect on May 13, 2024), we expected it to cancel all dividends to the parent company during 2024, while

...September 10, 2024 This report does not constitute a rating action. MEXICO CITY (S&P Global Ratings) Sept. 10, 2024--Alpek S.A.B. de C.V. has sufficient cash on hand for a $132 million dividend distribution to holding company Alfa S.A.B. de C.V. and minority interest shareholders. The distribution is in line with the leverage metrics in our base-case scenario for Alpek. It will not pressure the company's liquidity position, nor have rating implications. On Sept. 10, 2024, Alpek announced an extraordinary dividend payment, signaling its commitment to support the parent company's deleveraging. In our last review of Alpek (see Alpek S.A.B. de C.V., published on RatingsDirect on May 13, 2024), we expected it to cancel all dividends to the parent company during 2024, while it sought to improve its operating cash generation amid tough market conditions. However, for the six- month period ended June 30, 2024, the company generated higher cash flow from optimized capital expenditure (capex) and...

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