Bulletin: Nemak S.A.B. de C.V. Ratings Unaffected Following Announcement Of Acquisition Of Cevher Dokum Sanayii A.S.

MEXICO CITY (S&P Global Ratings)--S&P Global Ratings said today that the ratings on Nemak S.A.B. de C.V. (global scale: BB+/Positive/--; national scale: mxAA-/Positive/--) are not affected following the announcement that the company has signed an agreement to acquire 100% of Turkey-based auto supplier Cevher Dokum Sanayii A.S. (Cevher; not rated), whose annual sales total about $70 million. Cevher manufactures and sells complex aluminum components including heads and high-pressure die casting parts for the automotive industry. The transaction is still subject to approval from corresponding authorities. Nemak expects to close the transaction by the end of 2016. Nemak hasn't yet disclosed the transaction's amount or how the company is planning to fund it. Nevertheless, based on our estimates, the acquisition won't

...MEXICO CITY (S&P Global Ratings)--S&P Global Ratings said today that the ratings on Nemak S.A.B. de C.V. (global scale: ##+/Positive/--; national scale: mxAA-/Positive/--) are not affected following the announcement that the company has signed an agreement to acquire 100% of Turkey-based auto supplier Cevher Dokum Sanayii A.S. (Cevher; not rated), whose annual sales total about $70 million. Cevher manufactures and sells complex aluminum components including heads and high-pressure die casting parts for the automotive industry. The transaction is still subject to approval from corresponding authorities. Nemak expects to close the transaction by the end of 2016. Nemak hasn't yet disclosed the transaction's amount or how the company is planning to fund it. Nevertheless, based on our estimates, the acquisition won't impact its ratings and leverage metrics. And we expect Nemak to finance the transaction with its own cash. We consider that key credits metrics are mainly underpinned by Nemak's...

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