Moody's rates Nemak notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to Nemak, SAB de CV's proposed seven-year $500 million senior unsecured notes.

The proceeds will be used to refinance existing debt.

The outlook is positive.

The ratings consider the company's strong credit metrics for the rating category, high profitability as compared to other industry peers, leading position in the aluminum engine blocks and cylinder head market and its key supplier relationships with many of the major automakers, Moody's said.

Additional rating considerations are the inherent cyclicality of the auto manufacturing industry, the company's sales concentration with the top three U.S. automakers and its smaller scale when compared to global peers, the agency said.

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