Fitch upgrades Gruma

Fitch Ratings said it upgraded Gruma, SAB de CV's long-term foreign-currency issuer default rating to BB+ from BB, long-term local-currency issuer default rating to BB+ from BB and the rating on its $300 million perpetual bonds to BB+ from BB.

The outlook is stable.

The upgrade reflects Gruma's focus on debt reduction and improved profitability leading to a decline in its gross leverage, Fitch said.

The company will continue with its commitment to strengthen its capital structure and gradually decrease its total debt-to-EBITDA ratio to a level close to 2.5x in the following 12 months, the agency said.

The upgrade also considers the company's improved debt maturity profile and higher cash flow generation, Fitch said.

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