S&P rates Grupo M notes BB-

Standard & Poor's said it assigned a BB- long-term corporate credit rating to Grupo M Holding SA and a BB- rating to its proposed $150 million notes with a target maturity of 2017. The notes will benefit from the guarantee of the company's operating subsidiaries.

The outlook is stable.

The agency said the ratings reflect Grupo M's fair business risk profile characterized by a leading position in consumer electronics, home furniture, home appliances and telephone and computer equipment in Central America, as well as the company's business and geographic diversification and its good operating track record.

These factors are mitigated by the correlation of Grupo M's sales with economic cycles in the countries in which they operate, the competition it faces from regional and national competitors, its relative dependence on suppliers, a significant part of cash flow from generation derived from its consumer finance business and credit metrics that support a highly leveraged financial risk profile assessment, S&P said.

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