Mexico-based cement producer Fortaleza Materiales S.A.B. de C.V. (Fortaleza) announced it will propose to cancel its shares registration and delist the shares from the Mexican Stock Exchange. If the transaction is approved, it is still unclear how Fortaleza will fund it and how the transaction will affect the company's credit profile. It is also unclear how it will affect Fortaleza's spun-off company, Elementia Materiales S.A.B. de C.V. (Elemat; not rated), given that Elemat has announced the same proposal. We consider both entities to be part of the same group, given their interlocking business relations. As a result, on Nov. 11, 2021, S&P Global Ratings placed it 'BB-' issuer credit rating on Fortaleza on CreditWatch with negative implications. We plan to
