Fitch pares Becle

Fitch Ratings said it downgraded Becle, SAB de CV's long-term foreign and local currency issuer default ratings and senior unsecured notes to BBB from BBB+.

“The rating downgrade reflects a deterioration in Becle's leverage metrics beyond Fitch's previous projections as a result of lower operational performance and negative FCF, as well as higher debt levels. Fitch expects the company's EBITDA net leverage will be around 2.5x over 2023-2025. This level compares with our prior range of 1.5x-2x across the rating cycle,” the agency said in a press release.

Fitch said it estimates Becle will report negative FCF of close to Ps. 7 billion due to a decline of around 25% to 28% on EBITDA, higher interest expenses and net working capital needs, and capital expenditures and dividends of around Ps. 4 billion and Ps. 1.8 billion, respectively.

The outlook is stable.

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