S&P cuts Sixsigma Networks

S&P said it downgraded the ratings of Sixsigma Networks Mexico SA de CV (KIO Networks) and its senior unsecured notes due 2025 to B+ from BB-.

“The downgrade follows our expectation of greater pressure on the company's liquidity sources in the next 12 months. We estimate that the deepening recession in Mexico and in KIO Networks' other key markets will dent its cash flows in the near term, given that the Covid-19 outbreak has halted consumption and investments worldwide, affecting several industries,” said S&P in a press release.

The agency noted that KIO Networks has implemented measures to address the current crisis, ensure the business continuity and preserve its liquidity, but S&P said it expects cash flow volatility in the near term.

The outlook is negative.

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