S&P assigns MercadoLibre, notes BB+

S&P said it gave MercadoLibre Inc. and its planned senior unsecured notes BB+ ratings. The notes’ recovery rating is 3, indicating an estimated recovery of 50%-70% (rounded estimate: 65%) in default.

“The BB+ rating reflects the company’s solid market position as the largest e-commerce and payments ecosystem in Latin America. This, combined with a light balance sheet, should support business growth in the next few years,” S&P said in a press release.

The outlook is stable. The outlook reflects the view the company will continue posting strong growth rates, along with rising margins and bottom-line profitability, with debt to EBITDA below 2x and funds from operations (FFO) to debt above 30% in the next 12 to 24 months, the agency 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.