Moody's rates Sanluis notes B2

Moody's Investors Service said it assigned a B2 rating to Sanluis Rassini, SA de CV's proposed $275 million senior unsecured notes due 2017. Moody's also assigned a B2 foreign-currency corporate family rating.

The outlook is stable.

Proceeds will be used to refinance debt and for general corporate purposes.

The B2 corporate family rating is supported by the company's leading market position, the recovery of its operating performance and credit metrics over the past two years and solid near-term performance prospects, the agency said.

The company also benefits from limited steel price exposure, fixed price arrangements and the largely dollar-based revenue stream, which provides a natural hedge for dollar costs and liabilities, Moody's said.

Key credit weaknesses include the relatively high financial leverage given the cyclicality of the automotive industry, a highly competitive environment and the company's limited business diversification, according to the agency.

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