S&P rates Gayosso notes B+

Standard & Poor's said it assigned a B+ corporate credit rating to Grupo Gayosso SA de CV, along with a B+ rating to its proposed seven-year senior unsecured notes for up to $150 million with a recovery rating of 4, indicating 30% to 50% expected default recovery.

The proceeds will be used to repay about Ps.1.361 billion of its debt and use the remainder for maintenance capital expenditures.

The outlook is stable.

The ratings reflect the company's weak business risk profile, aggressive financial risk profile and adequate liquidity, S&P said.

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