S&P revises Axtel view to stable

S&P said it affirmed its BB ratings on Axtel SAB de CV and revised the outlook to stable from positive.

Axtel is a subsidiary of Alfa SAB de CV, which is spinning off its Nemak unit and plans to take multiple strategic actions on its remaining businesses, including Axtel.

“In our base-case scenario, we assume that a potential full divestment of Axtel could come within the next six to nine months. Since 2018, Axtel has been divesting some of its business units and assets to align its business and financial profile with its own and Alfa’s value maximization strategy. However, given this recent announcement from the parent company, we no longer see Axtel remaining a business unit within Alfa’s long-term strategy or benefitting from potential extraordinary support in some foreseeable circumstances,” S&P said in a press release.

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