S&P may cut Grupo Petrotemex

Standard & Poor's said that it placed the ratings on Grupo Petrotemex SA de CV, including the BB global-scale and mxA national-scale corporate credit ratings, on CreditWatch with negative implications.

The CreditWatch placement follows the announcement that Petrotemex parent company Alfa SAB de CV reached an agreement through Petrotemex subsidiary DAK Americas LLC to acquire Wellman Inc., the agency said.

The acquisition involves the purchase of 100% of Wellman's shares for approximately $185 million.

The impact would be mostly neutral, given that the company's operations are already fairly concentrated in the Nafta PET market, the agency added. However, if this transaction is mostly debt financed, Petrotemex's key financial ratios will likely be below current expectations by year-end, leading to a one-notch downgrade.

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