Fitch upgrades Kaltex

Fitch Ratings said it upgraded Grupo Kaltex, SA de CV's long-term foreign and local currency issuer default ratings to CCC from CC. Fitch also boosted the senior secured notes due in 2022 to CCC/RR4 from CC/RR4.

“These rating actions follow the reduction of the principal amount of the company's 2022 notes to $220 million from $320 million during 2021 using proceeds from the sale of two subsidiaries, Milano and Revman. They also incorporate Kaltex's improved operating results due to an increase in demand for its products,” Fitch said in a press release.

“The ratings remain constrained at the CCC category due to high refinancing risk, the cyclicality of the textile industry, input cost price volatility and limitations of transferring cost increases into prices in a rapid manner,” the agency said.

The outlook is positive.

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