S&P cuts Unicomer

S&P said it revised its outlook for Grupo Unicomer Corp. to negative from stable and affirmed the company’s BB- ratings.

“Due to worsening economic conditions and the pending acquisition of CrediScotia Financiara SA (CSF), we estimate Unicomer's leverage to remain close to our downgrade threshold in the next 12 months of 3x, while liquidity to remain under pressure from working capital needs, higher short-term debt, and the upcoming maturity of its $350 million notes due on April 1, 2024,” S&P said in a press release.

The agency warned that unless Unicomer improves its liquidity or if leverage exceeds its estimates, including adjusted debt to EBITDA above 3x and free operating cash flow (FOCF) to debt below 10%, it could downgrade the company in the next six months.

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