S&P downgrades Xignux

S&P said it downgraded Xignux SA de CV to BB and mxA+ from BB+ and mxAA-, respectively. At the same time, the agency lowered the long-term issue-level rating to mxA+ from mxAA- on its local bond (Cebures) Xignux 13 due 2023.

“Mexico’s anemic economy in 2019 took a toll on the company’s cable segment, pressuring its leverage metrics. Now Xignux faces an uncertainty over the severity of the potential decline in volume sales in all of its business units stemming from the coronavirus, which could raise the company’s debt to EBITDA ratio above 2.x as of March 31, 2020,” S&P said in a press release.

The outlook is stable.

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