Moody's ups Xignux

Moody's Investors Service said it upgraded Xignux SA de CV's corporate family rating to Ba3 from B1 and the $34 million 9½% senior unsecured global bonds due 2009 to B1 from B2.

The upgrade primarily reflects the company's improved margins and reduced leverage, the agency said.

The outlook is stable

The corporate family rating is supported by the company's leading positions in various sectors of the Mexican economy, geographic diversification from sizable export operations and positive trends for earnings, credit metrics and liquidity in recent quarters, the agency said.

The strengths are partly offset by the longer-term challenges of intense competition, pronounced cyclicality and significant commodity price exposure, Moody's said.

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