Fitch rates Petrotemex notes BB+

Fitch Ratings said it assigned a BB+ rating to Grupo Petrotemex, SA de CV's proposed add-on issuance of up to $75 million senior unsecured notes due 2014.

These notes are an additional offering of the $200 million 9½% senior unsecured notes due 2014 issued on Aug. 19.

The company's local- and foreign-currency issuer default ratings are BB+.

The outlook is negative.

Proceeds from the proposed issuance will be applied to debt repayment.

Petrotemex's credit ratings reflect its strong domestic and global competitive position, its long-term supply and customer arrangements and geographically diversified operating base, the agency said.

Also, 83% of its sales go to markets less exposed to downward economic cycles, the agency noted.

Ratings consider the company's increased leverage from historic levels as a result of large losses on its derivative contracts, as well as the current economic environment, Fitch added.

Total debt-to-EBITDA ratio for the 12 months ended Sept. 30 improved to 2.4 times from 3.3x at year-end 2008, the agency said.

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