S&P lowers Banco Ahorro Famsa

S&P said it lowered its long-term global scale issuer credit rating to B- from B and its national scale issuer credit rating to mxB from mxBBB- on Banco Ahorro Famsa SA Institucion de Banca Multiple (BAF).

At the same time, S&P lowered the short-term national scale rating to mxB from mxA-3. The outlook on both scale ratings remains negative, reflecting that on its ultimate parent.

“The downgrade of Grupo Famsa, SAB de CV (GFamsa; global scale: B-/negative/--; national scale: mxB/negative/--) reflects its liquidity constraints because initiatives to strengthen its operating and financial performance haven't been sufficient to improve cash flow generation,” S&P said in a news release.

The company plans to extend the maturity on its $140 million senior unsecured notes due May 2020.

“Failure to do so within six months would result in a one-notch downgrade,” S&P said.

© 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.