S&P: Grupo KUO unchanged

Standard & Poor's said the BB rating on Grupo KUO SAB de CV remains unchanged following the $75 million add-on to its existing $250 million 10-year senior unsecured notes with an annual fixed rate of 6¼%.

The agency said it doesn't expect the add-on to increase KUO's gross consolidated debt because it will use most of the proceeds from the issuance to refinance existing debt, including its senior unsecured notes due 2017, short-term debt and other long-term debt due 2016.

The add-on will help extend the debt's average debt term to about 8 years from about five, S&P said, and reduce interest expenses with lower-interest debt.

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