Fitch upgrades Petrotemex

Fitch Ratings said it upgraded Grupo Petrotemex, SA de CV's long-term issuer default rating, local-currency issuer default rating, $75 million privately placed senior notes due 2012 and $275 million senior notes due 2014 to BB+ from BB as well as DAK Americas, LLC's $115 million privately placed senior notes due 2014 to BB+ from BB.

The agency also assigned a BB+ long-term issuer default rating to DAK Americas.

The outlook is stable.

Fitch said the upgrades reflect the company's improved financial profile after the recent acquisitions of Eastman PTA and PET assets and Wellman, Inc.'s PET Resins business. The agency expects Petrotemex's pro forma total debt-to-EBITDA ratio for 2011 to be around 2.1 times.

Petrotemex's ratings are supported by the company's strong domestic and global competitive position, long-term supply and customer arrangements and geographically diversified operating base, the agency said.

The ratings also consider the company's aggressive growth strategy through debt-financed acquisitions, Fitch added.

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