OREANDA-NEWS. According to Fitch Ratings, the ratings of Alfa, S.A.B. de C.V. (Alfa) and Sigma Alimentos S.A. de C.V. (Sigma) are unaffected by Alfa's recent acquisition announcement. Alfa has acquired the 37% equity stake of Campofrio Food Group (Campofrio) that belonged to WH Group for USD354 million and will maintain this equity stake temporarily and subsequently sell it to Sigma.

Fitch expects that the acquisition value will initially be financed with debt and later be paid with a portion of the proceeds from the Sigma's planned initial public offering (IPO), expected in the second semester of 2015. In addition, Fitch believes the transaction is positive for Sigma as it will provide full ownership of Campofrio's cash flow generation as well as the flexibility to continue implementing its strategic plan.

Fitch does not project a material change in Alfa's credit metrics from the acquisition as Campofrio's shares will be sold to Sigma. However, Fitch will view as negative to the credit quality and financial position of Alfa any unsuccessful IPOs processes of Sigma and Nemak, S.A. de C.V., given that a portion of proceeds from these transactions are assumed to be allocated to the payment of the acquisitions of Pacific Rubiales Energy Corp. and Campofrio. Also, Fitch considers that a consolidated net debt/EBTIDA consistently above 2.5x will pressure Alfa's ratings.

At the level of Sigma, Fitch estimates on a pro forma basis, assuming 100% debt financing for the acquisition of Campofrio's shares, that the company's net debt/EBITDA will increase to approximately 3.0x. While this ratio is in the weak range of the rating category, Fitch anticipates it will decline to around 2.5x in the next 12 to 18 months, as Sigma plans to pay down debt with a portion of the proceeds from its IPO.

Fitch currently rates Alfa as follows:

--Long-term foreign currency Issuer Default Rating (IDR) 'BBB-';
--Long-term local currency IDR 'BBB-';
--Senior notes USD500 million due 2024 'BBB-';
--Senior notes USD500 million due 2044 'BBB-'.

The Rating Outlook is Stable.

Fitch currently rates Sigma as follows:

--Long-term foreign currency IDR 'BBB';
--Long-term local currency IDR 'BBB';
--National scale long-term rating 'AA+(mex)';
--USD450 million senior notes due 2018 'BBB';
--USD250 million senior notes due 2019 'BBB';
--Local Certificados Bursatiles Issuances 'AA+(mex)'.

The Rating Outlook is Stable.