S&P lowers Gruma bonds

Standard & Poor's said it lowered its long-term corporate credit rating on Gruma SAB de CV and its rating on Gruma's $300 million perpetual bonds to BB from BBB-, and placed the ratings on Creditwatch with negative implications, meaning that the ratings could either be lowered or affirmed following the completion of its review.

A downgrade could exceed one notch, the agency noted.

According to S&P, the downgrade reflects its perception that Gruma's financial policy has become more aggressive, as evidenced by its continued use of derivative instruments which have resulted in significant noncash losses.

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