Fitch cuts Desc senior unsecured debt to B

Fitch Ratings said it has assigned a senior secured foreign and local currency rating of B+ to Desc SA de CV and downgraded the senior unsecured debt rating to B from B+.

The outlook is stable.

Fitch said the rating actions reflect the conclusion of a debt refinancing process with bank creditors for about $720 million or 70% of the company's debt. The restructuring agreements will refinance the majority of Desc's short-term debt and prior syndicated loans.

The final terms of the restructuring include a five-year tenor with a 30-month grace period beginning in January 2004, a $40 million prepayment to bank creditors and higher interest rates, which may be reduced based on improvements in financial ratios.

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