Research Update: Nemak 'BB+' And 'mxAA-' Ratings Affirmed And Off CreditWatch Negative On Spin-Off Approval, Outlook Negative

Mexico-based auto supplier Nemak, S.A.B. de C.V. generates 52.6% of its revenue through North America sales, Europe (36.6%), and Asia and South America (10.8%) as of June 30, 2020. Among its main global original equipment manufacturer (OEM) clients are Ford Motor Co. (BB+/Negative/B), General Motors Co. (BBB/Negative/--), and Fiat Chrysler Automobiles N.V. (BB+/Watch Positive/B). Nemak still faces uncertainty about the severity of the potential decline in volume sales stemming from the pandemic this year. However, we believe that the deepest impact occurred during the second quarter because most of light-vehicle production was shut down, leading to a decline of about 36.1% in volume sales year to date as of June 30, 2020. On Sept. 8, 2020, S&P Global Ratings affirmed

...- Mexico-based auto supplier Nemak, S.A.B. de C.V. generates 52.6% of its revenue through North America sales, Europe (36.6%), and Asia and South America (10.8%) as of June 30, 2020. Among its main global original equipment manufacturer (OEM) clients are Ford Motor Co. (##+/Negative/B), General Motors Co. (###/Negative/--), and Fiat Chrysler Automobiles N.V. (##+/Watch Positive/B). - Nemak still faces uncertainty about the severity of the potential decline in volume sales stemming from the pandemic this year. However, we believe that the deepest impact occurred during the second quarter because most of light-vehicle production was shut down, leading to a decline of about 36.1% in volume sales year to date as of June 30, 2020. - On Sept. 8, 2020, S&P Global Ratings affirmed its long-term global scale '##+' and its national scale 'mxAA-' issuer credit ratings on Nemak. We also removed the ratings from CreditWatch with negative implications. - At the same time, we affirmed our global scale...

Research Update