Fitch changes Grupo Idesa to negative

Fitch Ratings said it affirmed the issuer default ratings of Grupo Idesa, SA de CV at BB- and revised the outlook to negative from stable.

Fitch said the revision of the outlook reflects the likelihood that the company will increase its debt to fund additional investments at its joint venture with Braskem, SA (Braskem-Idesa) related to the construction of Etileno XXI. Over the next 12 to 18 months, the agency believes IDESA will need to contribute about $150 million of incremental cash to support its 25% share of the joint venture. This plant will produce 1.05 million tons per year of polyethylene from an integrated ethane-based cracker.

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