S&P lowers Grupo Senda view to stable

Standard & Poor's said it revised the outlook on Grupo Senda Autotransporte SA de CV to stable from positive.

S&P said it affirmed the B global scale corporate credit and long-term issue ratings.

The recovery rating of 3 on Senda's senior secured notes remains unchanged.

The agency said also it affirmed the mxBBB-/mxA-3 national scale corporate credit ratings and the mxA-3 short-term local note rating.

The outlook revision reflects that Senda's operating performance has not improved as expected due to lower demand in its federal transportation segment and higher diesel prices, S&P said.

As a result, the agency said it does not expect Senda's liquidity or key financial ratios to improve as previously expected.

The ratings reflect the company's aggressive financial risk profile based on its sizable outstanding debt relative to its cash flow generation, S&P said.

The ratings also consider its less-than-adequate liquidity, additional debt to finance capital expenditure and exposure to exchange-rate volatility, the agency said.

The ratings also take into account its weak business risk profile, reflecting the company's small size relative to its peers, the competitive Mexican bus transportation market and the industry's slow growth, S&P added.

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