After somewhat weaker results in 2016, we expect Brazil-based cast iron components manufacturer Tupy to report improving profitability and credit metrics over the next few years, as a result of cost-cutting initiatives and capacity adjustments. Also, the increasing demand for commercial and off-road vehicles in the international markets should continue offsetting the still weak demand in the Brazilian market. We're affirming our 'BB-' global scale corporate and debt rating and 'brA' national scale corporate credit rating on Tupy. The stable outlook reflects our expectation that the company will improve profitability through cost efficiency measures and reduce its debt, leading to debt to EBITDA close to 3.5x by the end of 2017. On May 30, 2017, S&P Global Ratings affirmed its
