Alfa de CV : Nemak receives investment grade rating from Fitch Ratings
October 23, 2018 at 05:43 pm EDT
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October 23, 2018
Nemak receives investment grade rating from Fitch Ratings
Monterrey, N.L., Mexico, October 23, 2018.- ALFA, S.A.B. de C.V. (ALFA), reported today that its subsidiary Nemak announced that Fitch Ratings has upgraded the company's Issuer Default Rating (IDR) on a global scale to 'BBB-' from 'BB+' and its long-term national scale rating to 'AA(mex)' from 'AA-(mex)'. Additionally, the rating agency has revised Nemak's Rating Outlook to Stable from Positive.
As of September 30th, Nemak had a Net Debt to EBITDA ratio of 1.8 times and a Net Interest Coverage ratio of 8.4 times. 'This upgrade reflects Nemak's successful track record of prudent financial management as well as its solid credit profile and global business position. We are proud of our efforts to deliver disciplined and consistent growth, having kept a Net Debt to EBITDA ratio of less than 2.0 for 20 consecutive quarters. Moreover, achieving investment grade status will help us to gain access to more attractive financing conditions,' said Armando Tamez, President of Nemak.
About NEMAK
Nemak is a leading provider of innovative lightweighting solutions for the global automotive industry, specializing in the development and manufacturing of aluminum components for powertrain and body structure applications. The company employs more than 22,000 people at 38 facilities worldwide. In 2017, it generated revenues of US$4.5 billion.
About ALFA
ALFA is a holding company that manages a portfolio of diversified subsidiaries: Sigma, a leading multinational refrigerated food company, focused on the production, marketing and distribution of quality foods through recognized brands in Mexico, Europe, United States and Latin America. Alpek, one of the world's largest producers of polyester (PTA, PET and fibers), and the leader in the Mexican market for polypropylene, expandable polystyrene (EPS) and caprolactam. Nemak, a leading provider of innovative lightweighting solutions for the global automotive industry, specializing in the development and manufacturing of aluminum components for powertrain, structural components and for electric vehicles. Axtel, a provider of Information Technology and Communication services for the enterprise, government and mass market in Mexico. Newpek, an oil and gas exploration and production company with operations in Mexico and the United States. In 2017, ALFA reported revenues of Ps. 317,627 million (US $16.8 billion), and EBITDA of Ps. 38,312 million (US $2.0 billion). ALFA's shares are quoted on the Mexican Stock Exchange and on Latibex, the market for Latin American shares of the Madrid Stock Exchange.
Contact:
Luis Ochoa Reyes
Vice President, Corporate Communications
ALFA, S.A.B. de C.V.
+52 (81) 8748-25211
lochoa@alfa.com.mx
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Alfa SAB de CV published this content on 23 October 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 23 October 2018 21:42:04 UTC
Alfa SAB de CV is a Mexico-based holding company, which manages a portfolio of diversified subsidiaries. Its portfolio includes Sigma, a producer, marketer and distributor of foods under a number of brands in Mexico, the United States, Europe and Latin America; Alpek, a producer of polyester, namely purified terephthalic acid (PTA), polyethylene terephthalate (PET) and fibers, and offers to the Mexican market expandable polystyrene (EPS) and caprolactam, among others; Nemak, a provider of lightweighting solutions for automotive industry and specialized in the development and manufacturing of aluminum components for powertrain and body structure; Axtel, a provider of information technology and communication services for enterprises, government and residential markets through its Alestra and Axtel brands, and Newpek, which is an oil and gas exploration and production company with operations in Mexico and the United States.
ALFA S.A.B. DE C.V. 
