S&P pulls Fortaleza from watch

S&P said it affirmed Fortaleza Materiales, SAB de CV’s BB- issuer rating and removed it from CreditWatch where it was placed with negative implications on Nov. 11.

On Thursday, Fortaleza completed the acquisition of most of its free-floating shares, about 17% of its total shares. The company funded the transaction mostly with a Ps. 2 billion syndicated loan with a three-year tenor.

“We expect the buyback to only have a moderate short-term impact on the company's key credit metrics, because we forecast its adjusted leverage ratio to peak at about 3.2x by the end 2022 and drop to 2x-2.5x by the end of 2023,” S&P said in a press release.

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