Fitch Places Vitro, S.A. de C.V. on Rating Watch Negative

Date: 19 May 2003

Fitch Ratings has placed the senior unsecured foreign and local currency 'BB' ratings of Vitro, S.A. de C.V. (Vitro) on Rating Watch Negative.

Fitch has also downgraded Vitro's national scale rating to 'A+'(mex) from 'AA-'(mex).

The rating actions reflect the challenges that Vitro continues to face on its glass businesses, due to extended weak economic activity, pricing pressures from automobile manufacturers, import competition and lower cost absorption. These challenges have pressured cash flows and profitability, hampering Vitro's progress on debt reduction and the improvement of credit protection measures.

Vitro's debt remains high, at US$1,576 million at March 31, 2003. Recent transactions in the local medium-term note and syndicated loan markets have extended the maturity profile and a portion of the proceeds have been used to increase Vitro's liquidity position. At March 31, 2003 Vitro had US$262 million in cash and marketable securities, the ratio of Net Debt to Last 12 Months EBITDA was 3.3x and the ratio of Last 12 Months EBITDA to Interest Expense was 3.0x.

Prolonged economic weakness in Mexico and the U.S., and continued pressures on cash flows and credit protection measures may result in further rating actions. Over the near term, Fitch Ratings will continue to review and evaluate its credit ratings on Vitro.

Vitro is the leading producer of flat glass, glass containers and glassware in Mexico. The company exports glass products to more than 70 countries. In 2002, Vitro has sales of US$2.3 billion, EBITDA of US$403 million, exports of US$586 million and sales by foreign subsidiaries of US$628 million.

600450 Fitch Places Vitro, S.A. de C.V. on Rating Watch Negative glassonweb.com

See more news about:

Others also read

Local quality glass producer Emirates Glass Limited has won contracts to supply 68,000 square metres of its high quality EmiCool glass to five major projects in Dubai.
Southwall Technologies Inc. (Nasdaq:SWTX), a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, today announced that on Dec. 18, 2003, it secured an agreement for a new bank loan guarantee and equity financing package of up to $7.5 million from Needham & Company, Inc., its affiliates and Dolphin Asset Management.
KUB Malaysia Bhd has accepted an offer from Nippon Sheet Glass Co Ltd (NSG) to acquire its 15% stake in Malaysian Sheet Glass Bhd (MSG) for RM32.6 million in cash, or RM2.68 per share.
Co-Ventures in Glass Containers (CVIGC, Ltd.) of Tampa, Florida, USA and Micro-Tek Canada, Inc. Of Toronto, Canada are excited to announce the beginning of a long term joint venture to combine their extensive experiences and resources to offer the Glass Container Industry globally a best value alternative for all their outsourcing needs in manufacturing, operations and technical assistance agreements, specifically targeted to the smaller manufacturers who have found the larger service companies to be cost and profit prohibitive.The principals of the two companies have found a global need for smaller glass companies who require excellent technical resources to properly compete within the industry without the high costs of employing their own staffs or outsourcing their requirements to the larger service companies whose own operating costs and overhead are substantial.
China's largest automobile glass maker Fuyao Glass Industry Group Co, Ltd, won its case against the dumping ruling of the US Department of Commerce (DOC).
When did the wine industry start using glass bottles, and how did they settle on their current size of 750ml? For the answer to these questions, you have to go back in time - back thousands of years to when wine was first cultivated and enjoyed.

Add new comment