Fitch alters Alpek outlook to stable

Fitch Ratings said it revised its outlook for Alpek SAB de CV to stable from positive and affirmed its BBB- ratings.

“The stable outlook reflects Fitch's expectation that tougher market conditions should persist for slightly longer, causing leverage to fluctuate between 2x to 2.5x in the analysis horizon, in comparison to around 1x from our previous forecast. This is due to reduced or insufficient demand from certain sectors and increased supply from new capacity coming online in the past years, all of which put downward pressure on margins.

“This is offset by Alpek's strong competitive environment, solid customer base and end market resilience to economic downturns, mainly in its polyester business,” the agency said in a press release.

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