S&P cuts Petrotemex

Standard & Poor's said it lowered the long-term corporate credit rating on Grupo Petrotemex SA de CV to BB+ from BBB- and lowered the national scale rating on Petrotemex to mxAA- from mxAA.

The outlook is stable.

S&P said the downgrade reflects the increase in debt leverage as a result of the company's recent acquisitions.

Ratings reflect the company's aggressive financial profile, limited product diversity, exposure to price volatility, the industry's cyclical and capital-intensive nature, and the challenging operating environment in North America, the agency said.

Ratings also consider the company's strong market position, low-cost position and state-of-the-art technology, and longstanding agreements with customers and suppliers, the agency said.

The issuer has a total debt-to-EBITDA ratio of about 3 times.

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