Fitch lowers Petrotemex

Fitch Ratings said it downgraded Grupo Petrotemex, SA de CV's ratings as follows: long term issuer default rating to BB from BB+ and local currency issuer default rating to BB from BB+.

Petrotemex's outlook is stable.

Fitch said it has also downgraded the following ratings for Petrotemex and DAK Americas, LLC:

• Petrotemex $75 million privately placed senior notes due 2012 to BB from BB+;

• Petrotemex $275 million senior notes due 2014 to BB from BB+; and

• DAK Americas $115 million privately placed senior notes due 2014 to BB from BB+.

These downgrades follow Petrotemex's announcement that it had reached an agreement to acquire Eastman Chemical Co.'s integrated business in the United States for about $600 million, the agency added.

On a pro forma basis, Fitch said it estimates that Petrotemex's total debt-to-EBITDA, considering 12 months of Eastman assets operations, could reach 3.3 times in 2010 and gradually decrease in the future.

This leverage ratio compares negatively with the company's total debt-to-EBITDA ratio of 2.2x for the latest 12 months as of June 30 and fall outside of Fitch's prior leverage estimation of 2.0x to 2.5x, the agency added.

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