S&P affirms Grupo Famsa

S&P said it affirmed its B global scale and mxBBB- national scale corporate credit ratings on Grupo Famsa, SAB de CV.

The agency also affirmed the B issue-level rating on the company’s debt. The recovery rating of 3, which indicates an expectation of meaningful (50%-90%; rounded estimate 65%) recovery prospects for the bondholders in the event of a payment default, remains.

The outlook is negative.

“GFamsa has continued to implement initiatives to improve its capital structure and liquidity including an asset monetization plan and debt refinancing,” S&P said in a news release.

“However, the recovery of the company's operating performance has taken longer than expected, resulting in weak credit metrics, low cash flow generation and a tight liquidity.”

© 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.