S&P: Petrotemex off watch

Standard & Poor's said that it affirmed the BB long-term corporate credit rating and mxA national-scale rating on Grupo Petrotemex SA de CV and removed the ratings from CreditWatch, where they were placed with negative implications on Oct. 26, following the announcement of the acquisition of Eastman Chemical Co.'s plants.

The outlook is negative.

The affirmation follows the completion of S&P's review of Petrotemex's pro forma business and financial profile, including the integration of the purified terephthalic acid and polyethylene therephthalate business acquisition of Eastman Chemical, the agency said.

The ratings on Petrotemex reflect the company's limited product and geographic diversity, exposure to price volatility and the expected high debt levels as a result of the recent debt-financed acquisition, S&P said.

The ratings also consider the company's strong market position, low cost position, state-of-the-art technology and long-standing agreements with customers and suppliers, the agency added.

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