S&P trims Grupo Gicsa

S&P said it lowered its national scale ratings to mxBBB+ from mxA- on Grupo Gicsa SAB de CV. At the same time, the agency downgraded its local notes, Gicsa 15, Gicsa 17 and Gicsa 19 to mxBBB+ from mxA-. S&P also removed the ratings from CreditWatch with negative implications, where S&P placed them on April 7. Recovery ratings on these notes remain at 3, with an estimated recovery of 50%-90% for bondholders in a hypothetical event of default.

“We expect a high degree of volatility in the company's cash flows in the next 6-12 months because of uncertain business conditions, which may continue to pressure rent collections. Moreover, downside risks prevail because we expect a bumpy road to recovery for retail and related real estate in the next two years.

Also, S&P assigned its BB- issuer credit rating to the company on a global scale,” S&P said in a press release.

The outlook is negative.

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