Moody’s cuts KIO

Moody’s Investors Service said it downgraded SixSigma Networks Mexico, SA de CV’s (KIO) corporate family rating to B2 from B1. Moody’s also lowered to B2 from B1 the senior unsecured rating on its global notes due 2025. All ratings were placed on review for further downgrade.

“The downgrade was prompted by our expectation of a severe decline in top line and cash generation during the coronavirus outbreak in Mexico, resulting in further weakening KIO’s liquidity profile and a significantly higher leverage through 2021,” said Moody’s in a press release.

Moody’s said it now expects the Mexican economy to contract 3.7% In addition to the risk related with government contracts, KIO also faces the risk of a credit deterioration of its corporate customers, the agency said.

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