S&P pulls Elementia from watch

S&P said it affirmed its BB- ratings for Elementia SAB de CV and its senior unsecured notes and removed them from CreditWatch with negative implications. The recovery rating on the notes remains 3.

The agency cited a decrease in short-term liquidity risks and its expectation the planned spin-off won’t happen for the next few quarters in explaining the removal from CreditWatch.

Elementia more than doubled its cash reserves at June 30 to PS 3.4 billion from Ps 1.4 billion at March 31. The company achieved this through tighter working capital management, lowering capital expenditures and extending debt maturities, S&P said.

The outlook is negative.

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