Nemak S.A.B. de C.V. Outlook Revised To Positive From Stable On Improving Credit Metrics; 'BB+' Ratings Affirmed

Nemak has improved its operating performance above our expectations, benefitting from favorable market conditions in North America over the past couple of years that resulted in improved margins. We are revising our outlook on Nemak to positive from stable and affirming our 'BB+' global scale and 'mxAA-' national scale ratings on Nemak. The positive outlook reflects our expectation that the company will continue to improve its key credit metrics in the next two years, including debt to EBITDA below 2.0x and FFO to debt in the 50% to 60% range due to the positive prospects for the sector and the expansion of Nemak's operations. MEXICO CITY (S&P Global Ratings) June 29, 2016--S&P Global Ratings affirmed its 'BB+' global scale corporate

...+ Nemak has improved its operating performance above our expectations, benefitting from favorable market conditions in North America over the past couple of years that resulted in improved margins. + We are revising our outlook on Nemak to positive from stable and affirming our '##+' global scale and 'mxAA-' national scale ratings on Nemak. + The positive outlook reflects our expectation that the company will continue to improve its key credit metrics in the next two years, including debt to EBITDA below 2.0x and FFO to debt in the 50% to 60% range due to the positive prospects for the sector and the expansion of Nemak's operations. MEXICO CITY (S&P Global Ratings) June 29, 2016--S&P Global Ratings affirmed its '##+' global scale corporate credit and issue-level ratings on Nemak S.A.B. de C.V. (Nemak). At the same time, we affirmed our 'mxAA-' long-term national scale corporate credit rating. The recovery rating on Nemak's $500 million senior unsecured notes remains unchanged at '3H', indicating...

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