Bulletin: Alpek S.A.B. de C.V.'s Planned Sale Of Two Cogeneration Power Plants For $801 Million Will Support Credit Metrics

MEXICO CITY (S&P Global Ratings) Jan. 8, 2019--S&P Global Ratings said today that Alpek S.A.B. de C.V.'s (BBB-/Stable/--) announcement of the sale of two of its cogeneration energy plants for $801 million will further support its credit metrics. This comes after Alpek's recent acquisitions of the Corpus Christi project from M&G USA Corp. of around $400 million ($266 million in cash) and the Brazilian assets, Petroquímica Suape and Citepe, for $435 million. The planned sale doesn't change our credit analysis of Alpek, because we already incorporated the asset sale and acquisitions into our analysis. These developments should maintain the company's leverage below 3.0x and funds from operations to debt above 30% in 2019, in line with the current rating level.

...MEXICO CITY (S&P Global Ratings) Jan. 8, 2019--S&P Global Ratings said today that Alpek S.A.B. de C.V.'s (###-/Stable/--) announcement of the sale of two of its cogeneration energy plants for $801 million will further support its credit metrics. This comes after Alpek's recent acquisitions of the Corpus Christi project from M&G USA Corp. of around $400 million ($266 million in cash) and the Brazilian assets, Petroqufmica Suape and Citepe, for $435 million. The planned sale doesn't change our credit analysis of Alpek, because we already incorporated the asset sale and acquisitions into our analysis. These developments should maintain the company's leverage below 3.0x and funds from operations to debt above 30% in 2019, in line with the current rating level. Alpek reached a final agreement with ContourGlobal Terra 3 S.a.r.l, a subsidiary of ContourGlobal plc (##-/Positive/--), to sell its Cosoleacaque and Altamira cogeneration power plants. The company expects to use the proceeds to finance...

Bulletin