Fitch rates Arendal notes B

Fitch Ratings said it affirmed Arendal, S de RL de CV's local- and foreign-currency issuer default ratings at B and assigned an expected B rating with recovery rating of RR4 to its proposed issuance of up to $100 million under a medium-term note program.

The expected maturity of the first tranche is up to two years, Fitch said.

The outlook is stable.

The proceeds will be used for general corporate purposes.

The recovery rating of RR4 indicates 31% to 50% expected default recovery.

The ratings are supported by the company's track record and technical experience in the Mexican heavy construction industry as a recognized player in the construction of fluid transportation systems and plants, Fitch said.

The ratings also consider the company's participation in both public and private sector projects across Mexico, the agency said, and a positive operating performance despite a challenging economic environment.

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