Correction: Fitch Ratings Downgrades Desc, S.A. de C.V. to 'BB+'.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 19, 2002

(In a press release issued earlier, in the second paragraph, the ratio of Total Debt to EBITDA of 3.5x corresponds to the year ended Dec. 31, 2001. In the same paragraph, an explanation of the change in the ratio of EBITDA to Interest Expense has been added. The amended press release follows.)

Fitch Ratings-New York-December 19, 2002: Fitch Ratings has downgraded its senior unsecured foreign and local currency ratings of Desc S.A. de C.V. (Desc) to 'BB+' from 'BBB-'. Fitch has also downgraded Desc's national scale ratings to 'AA-'(mex) from 'AA'(mex). The ratings remain on Negative Outlook.

The prolonged delay in the recovery of the U.S. and Mexican economies has impaired the improvement of Desc's credit protection measures, which are weak for the prior rating category. Although Desc has made important efforts to repay debt and reduce costs, Total Debt to EBITDA has deteriorated to 3.9x at September 30, 2002 from 3.5x for the year ended December 31, 2001. For the nine months ended September 30, 2002, the ratio of EBITDA to Interest Expense reached 3.3x compared to 2.8x for the prior comparable period, as a result of the refinancing in 2002 of short term debt at lower interest costs.

Desc's operating environment remains extremely challenging, with the revenue base under continued global demand pressure. For the first nine months of 2002, total sales declined by 10% from the first nine months of 2001 and EBITDA also declined by 10%. Automobile production in the U.S. remains weak. The closure in August 2002 of the DaimlerChrysler plant in Mexico City represented approximately US$130 million of annual loss contracts for Desc that would only be partially compensated by new contracts from Dana Corp. The chemical business is also affected by weak demand, volatile fuel prices, lower worldwide capacity utilization rates, and inability to transfer higher raw material costs to sale prices. Low capacity utilization rates have also hurt profit margins at the automotive parts and chemical business, which together account for approximately 80% of total revenues and 87% of EBITDA at Desc.

The ratings are supported by Desc's diversified revenue stream, strong business position in the autoparts and chemical sectors, joint ventures and strategic alliances with international industry leaders and the generation of a majority of revenues in U.S. dollars or U.S. dollar-indexed terms.

Desc is a diversified holding company and one of Mexico's largest industrial conglomerates, with operations in the automotive parts, chemical, food and real state businesses.