Mexico-based building materials company Elementia S.A.B. de C.V. (Elementia) posted stronger-than-expected operating and financial performance in the last 12 months, including an adjusted net debt to EBITDA close to 3.5x. We estimate the company will continue deleveraging in the next 12 months, thanks to stronger EBITDA and cash generation in its three business units amid favorable industry fundamentals. We expect that even if the proposed spin-off materializes in the next six months, the company's credit metrics will remain commensurate with the current rating level. On July 21, 2021, S&P Global Ratings revised its outlook on Elementia to stable from negative. We also affirmed our 'BB-' issuer credit rating on the company. The stable outlook reflects our expectation that Elementia will