Moody's assigns Axo, notes Ba2

Moody's Investors Service said it assigned a Ba2 corporate family rating to Grupo Axo, SAPI de CV and a Ba2 rating to its planned up to $325 million senior unsecured global bond. The outlook is stable.

"The Ba2 ratings reflect Axo's solid market position, well known brands, broad product offering and track record of growth, both organically and through new licenses and acquisitions," said Sandra Beltran, a Moody's vice president and senior analyst, in a press release.

"We consider Axo's strong operating cash generation underpinned by a profitable business model that leverages the company's clout and obtains synergies from its integration throughout the entire apparel business cycle and price points," added Beltran.

Axo will use the proceeds to refinance local notes and bank debt pushing virtually all its debt maturities out at least five years.

The outlook reflects an expectation that Axo will be able to recover brick-and-mortar sales as the effect of the pandemic abates through 2023, Moody’s said.

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