S&P gives SixSigma CCR, notes BB-

Standard & Poor's said it assigned its preliminary BB- corporate credit rating to SixSigma Networks Mexico, SA de CV (KIO Networks).

The outlook is stable.

The preliminary rating is subject to the successful medium- or long-term financing and completion of the acquisition of redIT (not rated).

S&P also assigned its preliminary BB- issue-level rating to the company's up to $600 million in proposed senior unsecured notes due 2021. The 4 recovery rating on this debt indicates an expectation for an average (30% to 50%) recovery for lenders in the event of a payment default.

The company will use proceeds mainly to fund redIT's acquisition, and to pay down existing debt.

"The rating reflects the company's small scale, limited geographic business diversity slightly lower EBITDA margins than those of its peers, and relatively low churn rates," S&P credit analyst Fabiola Ortiz said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.