Fitch lowers Vitro ratings

Fitch Ratings said it downgraded its senior unsecured foreign and local currency ratings of Vitro SA de CV to B from BB-. Fitch has also downgraded Vitro's national scale ratings to BBB(mex) from A+(mex). The ratings have been removed from Rating Watch negative and have been placed on stable.

Fitch has also affirmed the short-term national scale rating at F2(mex).

Additionally, Fitch has assigned a rating of B+ to the recent issue of senior secured guaranteed notes by Vitro Envases Norteamerica SA de CV. Fitch has also assigned a rating of B- to the 2007 11 3/8% notes issued by Sofivsa and the 2013 11¾% issued by Vitro.

Fitch said continued pressures on free cash flow have limited debt repayment and leverage remains high. The challenging environment deteriorated operating fundamentals and credit protection measures to levels not commensurate with the prior rating categories. Notwithstanding, Fitch believes that the recovery in Vitro's markets and the company's internal cost-reducing efforts should help stabilize financial indicators at current levels.

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