S&P upgrades SPCM

Standard & Poor's said it raised the long-term corporate credit on SPCM SA to BB from BB-, along with its senior unsecured bonds to BB from BB-.

The recovery rating of 4 on the bonds remains unchanged, indicating 30% to 50% expected recovery in a default.

The outlook is stable.

The upgrade follows a reassessment of the company's business risk profile as satisfactory versus fair, S&P said, and its financial risk profile as significant versus aggressive.

The company has been able to materially increase revenues and EBITDA in the past years, thanks to robust end-market growth and new capacities, which are expected to continue, the agency said.

The upgrade also incorporates expectations that the company's financial policy, liquidity and key credit metrics will continue to support the ratings, S&P said.

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