S&P gives Grupo Idesa, notes BB-

Standard & Poor's said it assigned its BB- corporate credit rating on Grupo Idesa SA de CV.

At the same time, the agency assigned a BB- issue-level rating to Idesa's proposed issuance of up to $300 million Rule 144 A/Regulation S seven- and 10-year senior unsecured notes, and assigned a recovery rating of 4.

The outlook is stable.

S&P's assessment of the company's "fair" business risk profile incorporates: A product portfolio concentrated on ethylene glycols and ethanol amines with about 35% and 10% of sales volume, respectively, with a significant portion of sales volume aimed to the polyethylene terephtalate end market with about 27%; geographic concentration of operations in Mexico, with export ranging between 10% and 15%; commodity-like nature of its products; exposure to price volatility of feedstock and products; and high concentration of suppliers, with Pemex representing about 70% of purchases and of customers, with 12 of these accounting for about 40% of total sales.

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