S&P ups Grupo KUO

Standard & Poor's said that it raised the long-term global-scale corporate credit rating on Grupo KUO SAB de CV to BB from BB- and its national-scale ratings to mxA from mxBBB+. S&P also raised the foreign-currency ratings on the $250 million of senior notes due 2017 and $175 million unsecured bank loan due 2013 to BB from BB-.

The recovery rating on both issues is 3. S&P raised the national-scale rating on the Ps. 700 million of notes due 2015 to mxA from mxBBB+.

The outlook is stable.

The ratings reflect the significant and consistent improvement in KUO's financial performance over the past two years, as evidenced by its key financial ratios, the agency said.

The ratings consider KUO's weak business risk profile, which reflects its single-digit operating margins; the cyclicality in some of its core businesses and its exposure to the volatility of its raw materials prices and foreign exchange rate fluctuations, the agency added.

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