S&P affirms Grupo Famsa, notes

Standard & Poor's said it affirmed its B corporate credit rating on Grupo Famsa SAB de CV and its B senior unsecured debt rating on the company's $200 million fixed-rate notes.

The outlook is stable.

At the same time, the agency said it affirmed the recovery rating on the notes at 3, indicating an expectation of meaningful recovery in the event of a payment default.

"The ratings on GFamsa are limited by the company's weak business profile based on its small position in Mexico as its main market in conjunction with the high competition in the industry and its highly leveraged financial risk profile resulting from negative free operating cash flow," said S&P credit analyst Sandra Tinoco in a news release.

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