Aug 20 - Standard & Poor's Ratings Services said today that its ratings on
Mexichem S.A.B. de C.V. (BBB-/Stable/-- and mxAA/Stable/mxA-1+) are
not affected following the company's announcement of the signing of a memorandum
of understanding with Occidental Chemical Corp. (A/Stable/--) for the creation
of a joint venture. The joint venture includes construction of an ethylene
cracker in Ingliside, Texas, with an estimated annual capacity of 500,000 tons.
At this point, the investment is still under feasibility studies and subject
to several approvals. In our view, this announcement is in line with Mexichem's
strategy of undertaking investments that strengthen its vertical integration and
business position and secure the supply of raw materials for its production. Our
ratings on the company already incorporate the possibility of such growth
initiatives, but sticking to its financial policy of keeping its net debt to
EBITDA at no more than 2.0x.