S&P rates Senda notes B+

Standard & Poor's said it assigned a B+ long-term corporate credit rating to Grupo Senda SA de CV. S&P also assigned a B+ senior unsecured debt rating to the company's proposed $150 million fixed-rate notes due 2015.

The outlook is positive.

The rating reflects the issuer's high leverage in a very competitive market, its debt increase from the Transportes del Norte acquisition and its low organic growth and somewhat small size, S&P said.

These weaknesses are balanced by the company's strong position in northeastern and central Mexico and its young fleet life, resulting in strong operating performance, the agency said.

The acquisition weakened Senda's total-debt-to-EBITDA ratio to 3.8 times, according to S&P.

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