S&P cuts Grupo Kaltex

S&P said it lowered the ratings for Grupo Kaltex SA de CV and its notes to CCC- from CCC and placed the ratings on CreditWatch with negative implications.

“Absent any refinancing completion, we believe Kaltex won't have sufficient funds to pay its $218 million senior notes due April 11, 2022. Therefore, we believe that Kaltex is facing a near-term default risk in relation to its 2022 notes. In November 2021 and February 2022, the company announced its intention to issue new $220 million five-year senior secured notes to refinance its existing notes through a cash tender offer, but the transaction didn't close,” S&P said in a press release.

Kaltex is trying to raise cash via a private placement to refinance the 2022 notes, the agency said.

The negative watch reflects the ongoing attempt by Kaltex to refinance its notes and the probability of default, S&P noted.

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