S&P pares Unicomber

S&P said it lowered its ratings on Grupo Unicomer Corp. and its debt to B+ from BB-.

“Unicomer's $350 million notes due 2024 now mature in about 10 months, which pressures the company to quickly refinance this debt under significantly tighter financing conditions. We consider the refinancing as key for future rating actions. Moreover, we expect Unicomer to close the refinancing in the next few months because it's currently working on the transaction. However, if the refinancing is delayed, it would pressure the B+ rating due to increased debt maturity risks,” S&P said in a press release.

“In addition, we anticipate that the company's debt will increase in the next 12 months to fund the acquisition of CSF and due to working capital requirements. We estimate this higher debt and expected higher financing costs would raise interest expenses to $90 million to $100 million, weighing on Unicomer's profitability and cash flow generation,” the agency added.

The outlook is negative.

© 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.