S&P pulls Grupo Kaltex from watch

S&P said it affirmed its CCC ratings on Grupo Kaltex SA de CV and its notes and removed all its ratings from CreditWatch with negative implications where the agency placed them on April 6. The 3 recovery rating on the notes is unchanged.

Despite the challenges of the pandemic, Kaltex finished the June quarter with Ps. 291 million on its balance sheet.

“Moreover, although we expect a lengthy recovery in business conditions, since the end of June, Kaltex reactivated all its operations, and we now expect a gradual recovery in sales while it maintains its disciplined financial measures to enhance its cash position toward the end of the third quarter. In addition, we expect the company to use its factoring program to discount some of its receivables to boost its cash balance. Therefore, we expect Kaltex to be in a position to meet its semiannual coupon payments due Oct. 11, 2020, on its $320 million senior secured notes due 2022 for about $14 million,” S&P said in a press release.

The outlook is negative. The outlook reflects the risk of default within the next 12 months remaining elevated, 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.