Nemak's Proposed EUR500 Million Senior Unsecured Notes Rated 'BB+' (Recovery Rating: '3')

MEXICO CITY, March 9, 2017--S&P Global Ratings assigned today its 'BB+' issue-level rating to Nemak S.A.B. de C.V.'s (BB+/Positive/--) proposed €500 million senior unsecured notes. At the same time, we assigned our recovery rating of '3' to the notes, indicating our expectation for a meaningful (50% to 70%) recovery in the event of a payment default. Our ratings on Nemak, including our 'BB+' long-term corporate credit rating, are unchanged. Nemak plans to use the proceeds to refinance existing debt, including its syndicated loans due 2018 and 2020. We expect the proposed transaction to improve Nemak's debt maturity profile by extending the average debt term from about four years to about six, further supporting company's adequate liquidity assessment. Additionally, we consider

...MEXICO CITY, March 9, 2017--S&P Global Ratings assigned today its '##+' issue-level rating to Nemak S.A.B. de C.V.'s (##+/Positive/--) proposed 500 million senior unsecured notes. At the same time, we assigned our recovery rating of '3' to the notes, indicating our expectation for a meaningful (50% to 70%) recovery in the event of a payment default. Our ratings on Nemak, including our '##+' long-term corporate credit rating, are unchanged. Nemak plans to use the proceeds to refinance existing debt, including its syndicated loans due 2018 and 2020. We expect the proposed transaction to improve Nemak's debt maturity profile by extending the average debt term from about four years to about six, further supporting company's adequate liquidity assessment. Additionally, we consider that the transaction will balance Nemak's debt mix by matching it with revenue denominated in euros, which account for approximately 30% of total revenue. In connection with the note offering , the recovery rating...

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