Fitch Releases Credit Analysis of Grupo Mexico & Subsidiaries.CHICAGO -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has released a credit analysis of Grupo Mexico, S.A. de C.V. (Grupo Mexico) and its subsidiaries. This report explains Fitch's rating rationale for the six-rated entities, including Grupo Mexico, Americas Mining Corporation (AMC (Advanced Mezzanine Card) See AdvancedTCA. ), Southern Peru Copper Corporation (SPCC SPCC abbr. Society for the Prevention of Cruelty to Children SPCC (US) n abbr (= Society for the Prevention of Cruelty to Children) → Kinderschutzbund m ), Minera Mexico, S.A. de C.V. (Minera Mexico), Asarco, Inc. (Asarco), and Grupo Ferroviario Mexicano, S.A. de C.V. (GFM GFM Government-Furnished Material GfM Gesellschaft Für Musikforschung GFM Global Freight Management GFM Gruyere Fribourg Morat (Swiss / Fribourg Railways-Bus Organisation) GFM Global Force Management GFM Gram Formula Mass ). The report also includes an analysis of the companies' financial and business positions. Grupo Mexico is a holding company whose copper mining assets are aggregated under AMC. Through AMC, Grupo Mexico owns a 75% stake in SPCC, one of the world's lowest cost copper producers. SPCC's operating assets are located in Peru and Mexico, as SPCC now owns 99% of Minera Mexico, Mexico's largest mining group. In 2004, SPCC, on a stand-alone basis, accounted for 45% of consolidated sales of 868,000 tons of refined copper, and Minera Mexico accounted for 37%. GM also owns 100% of Asarco in the U.S., which accounted for 18% of consolidated copper sales volumes. Grupo Mexico also owns a major railway in Mexico via its GFM subsidiary. The railway connects Mexico's major cities and six seaports and has five points of connection along the U.S. border. Grupo Mexico's 2004 revenues of $4.2 billion were generated from sales of copper (61%), molybdenum molybdenum (məlĭb`dənəm) [Gr.,=leadlike], metallic chemical element; symbol Mo; at. no. 42; at. wt. 95.94; m.p. about 2,617°C;; b.p. about 4,612°C;; sp. gr. 10.22 at 20°C;; valence +2, +3, +4, +5, or +6. (15%), transportation services, (15%), silver (3.0%), zinc (3.0%), gold (1.0%), and sulphuric acid (1%). In 2004, AMC generated about 89% of Grupo Mexico's consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , while GFM generated about 11% of the group's EBITDA. A full copy of Fitch's credit analysis reports about Grupo Mexico and its subsidiaries can be found within Fitch Research, on Fitch's subscription-based web site, located at www.fitchratings.com. Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies, and relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from this site, at all times. This document will remain on the public site for seven days. |
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