Fitch: Mexichem's Ratings Not Affected by Explosion at PMV

CHICAGO--(BUSINESS WIRE)-- The economic impact resulting from last week's explosion at Petroquimica Mexicana de Vinilo (PMV) should be manageable for Mexichem, S.A.B. de C.V.'s credit profile due to the company's diversified operations and ample financial flexibility, according to Fitch Ratings. Under normal operating conditions, the contribution from PMV to Mexichem's consolidated EBITDA would have represented less than 7% during 2016.

Fitch will continue to monitor any potential contingencies resulting from the catastrophe as well as the extent of insurance policies that could help mitigate any liability or reconstruction costs. As of year-end 2015, Mexichem held USD653 million of cash and faced no large debt maturities until 2022. The company's consolidated EBITDA was USD905 million and its net leverage ratio was 2.1x.

Additional information is available on www.fitchratings.com

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Fitch Ratings
Primary Analyst
Gilberto Gonzalez, CFA
Associate Director
+1-312-606-2310
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Rogelio Gonzalez
Associate Director
+52 81-8399-9100
or
Media Relations:
Elizabeth Fogerty, +1-212-908-0526
[email protected]

Source: Fitch Ratings

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