Nemak S.A.B. de C.V.'s Proposed Senior Unsecured Notes Up To $500 Million Rated 'BB+' (Recovery: '3')

MEXICO CITY (S&P Global Ratings) June 21, 2021--S&P Global Ratings today assigned its 'BB+' issue-level and '3' recovery ratings (rounded estimate: 55%) to Nemak S.A.B. de C.V. (Nemak; BB+/Stable/--)'s proposed senior unsecured notes of up to $500 million in aggregate amount. This transaction reflects Nemak's active liability management. The company will refinance its existing 4.75% senior unsecured bond due 2025 with an outstanding balance of $500 million, ahead of its maturity. Under this bond, the company has established sustainability objectives, mainly to reduce greenhouse gas (GHG) emissions. Nemak's goal is to reduce GHG emissions by 28% by 2030 with a median target of 18% by 2026, compared with scope 1 and 2 GHG emissions of 1.4 million metric tons of

...June 21, 2021 MEXICO CITY (S&P Global Ratings) June 21, 2021--S&P Global Ratings today assigned its '##+' issue-level and '3' recovery ratings (rounded estimate: 55%) to Nemak S.A.B. de C.V. (Nemak; ##+/Stable/--)'s proposed senior unsecured notes of up to $500 million in aggregate amount. This transaction reflects Nemak's active liability management. The company will refinance its existing 4.75% senior unsecured bond due 2025 with an outstanding balance of $500 million, ahead of its maturity. Under this bond, the company has established sustainability objectives, mainly to reduce greenhouse gas (GHG) emissions. Nemak's goal is to reduce GHG emissions by 28% by 2030 with a median target of 18% by 2026, compared with scope 1 and 2 GHG emissions of 1.4 million metric tons of carbon dioxide equivalent as of Dec. 31, 2019. Under a stressed scenario, where the company does not achieve the expected sustainability performance target in the proposed timeframes, this will result in an increased...

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