S&P ups, rates Idesa notes B-

S&P said it raised Grupo Idesa SA de CV’s issuer rating to B- from SD, selective default, and assigned B- issue and 3 recovery ratings to its $187 million of new senior secured notes due 2028. The 3 rating indicates meaningful recovery (50%-90%) prospects if Idesa defaults.

The agency concurrently withdrew D issue-level and 4 recovery rating on about $23.4 million in senior secured notes due in 2026 at Idesa’s request.

“Idesa completed its exchange offer by reaching an acceptance of 92.2% among its 2026 senior notes bondholders, who received the new 2028 senior secured notes and cash consideration. Coupled with the capitalization of $310 million from its main lender, Inbursa, Idesa has now enhanced its capital structure by slashing its debt by about 50% (before the exchange offer) and alleviated its financial burden,” S&P said in a press release.

Even with the exchange, however, S&P said it projects Idesa’s leverage will remain in 8x-9x range.

The outlook is stable.

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