S&P slices Grupo Gicsa

S&P said it lowered its long-term global scale issuer credit rating on Grupo Gicsa SAB de CV to CCC from B- and its national scale issuer credit rating to mxCCC from mxB. The agency also cut the issue ratings to mxCCC from mxB on the company's senior unsecured notes Gicsa 15, Gicsa 17 and Gicsa 19.

S&P noted Gicsa reported any refinancing or liability management plan and its cash balance and cash flows remain strained, as demonstrated by its last quarterly earnings results.

“The company continues to work with its advisers on analyzing strategies for its debt structure and the monetization of non-productive assets to improve its financial position. However, in our view, the lack of tangible progress on its plan, coupled with undermined operations, has increased the likelihood of a default in the near term. The conclusion of its liability management plan and review of the proposed terms and conditions to bondholders in the next months will be decisive for the rating,” S&P said in a press release.

The ratings remain on CreditWatch with negative implications.

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