S&P downgrades Grupo Senda

S&P said it lowered the global scale long-term issuer credit rating on Grupo Senda Autotransporte SA de CV to B- from B.

The agency said it lowered the long-term national scale issuer credit rating to mxBB+ from mxBBB- and short-term national scale issuer credit and debt ratings to mxB from mxA-3.

The outlook is stable.

Pressures on Senda's liquidity have lingered mainly from significant short-term debt maturities related to the company's syndicated loan, leases and revolving facilities, S&P said.

This is despite the company refinancing in early 2016 of its outstanding debt through a syndicated loan that the agency said it originally expected to enhance liquidity.

S&P noted that the company maintained the use of its credit facilities to fund its working capital requirements and the expansion of the personnel business.

The company has continued to refinance its short-term debt in 2017 and 2018, but these actions are not enough to overcome Senda's substantial short-term maturities, the agency said.

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