Fitch cuts Petrotemex

Fitch Ratings said it downgraded the credit ratings of Grupo Petrotemex, SA de CV as follows: local currency issuer default rating to BBB- from BBB, foreign currency issuer default rating to BBB- from BBB, Petrotemex's $75 million privately placed senior notes due 2012 to BBB- from BBB and DAK Americas' $115 million guaranteed senior notes due 2014 to BBB- from BBB.

The outlook has been revised to negative from stable.

The agency said that the rating actions reflect Petrotemex's increased financial leverage as a result of the additional debt associated with the acquisition of two polyethylene terephtalate plants from Eastman during the fourth quarter of 2007.

On a pro forma basis assuming the acquisition was made at the beginning of 2007, Petrotemex's total debt-to-EBITDA ratio was increased to 3.1 times (x) during 2007 from 1.9x the previous year, the agency noted.

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