S&P rates Grupo Famsa, notes B

Standard & Poor's said it assigned a B corporate credit rating to Grupo Famsa SAB de CV, along with a B senior unsecured debt rating to its proposed $200 million fixed-rate notes. The agency also said it assigned a recovery rating of 3, indicating an expectation of 50% to 70% recovery in a default.

The outlook is stable.

The ratings are limited by the potential support of its bank operations by its retail division, negative free operating cash flow generation and stiff competition in the industry, S&P said.

The ratings also incorporate the company's relatively strong position in the Mexican retail industry, its increasing geographic and client diversification and its recent expansion into the U.S. Hispanic market, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.