Bulletin: Alpek S.A.B. de C.V. Ratings Not Affected By Mossi&Ghisolfi's Overdue Payments

MEXICO CITY (S&P Global Ratings) Sept. 15, 2017--S&P Global Ratings said today that its rating and outlook on Alpek S.A.B. de C.V. (BBB-/Stable/--) are not affected by its announcement of halting its purified terephthalic acid (PTA) supply to the PET plants in Altamira operated by Mossi&Ghisolfi (M&G; not rated). M&G owes Alpek approximately $120 million in PTA supplies, $49 million of which are already past due. M&G is an important customer for Alpek, because it represents around 10% of total revenue and EBITDA. Although this event could drop Alpek's EBITDA below our original expectations for 2017, we consider that the company's debt-to-EBITDA ratio would remain below 3.0x, which is in line with the current rating. In our previous

...MEXICO CITY (S&P Global Ratings) Sept. 15, 2017--S&P Global Ratings said today that its rating and outlook on Alpek S.A.B. de C.V. (###-/Stable/--) are not affected by its announcement of halting its purified terephthalic acid (PTA) supply to the PET plants in Altamira operated by Mossi & Ghisolfi (M&G; not rated). M&G owes Alpek approximately $120 million in PTA supplies, $49 million of which are already past due. M&G is an important customer for Alpek, because it represents around 10% of total revenue and EBITDA. Although this event could drop Alpek's EBITDA below our original expectations for 2017, we consider that the company's debt-to-EBITDA ratio would remain below 3.0x, which is in line with the current rating. In our previous forecast, we had estimated incremental EBITDA for Alpek stemming from supply rights for 500,000 tons per year of PET from a new PTA-PTE plant in Corpus Christi, Texas. M&G is building the plant in which Alpek made an investment of around $435 million, which...

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