S&P ups Controladora Mabe

S&P said it raised its long-term issuer credit rating on Controladora Mabe SA de CV and the issue-level rating on the company's senior unsecured debt to BBB from BBB-.

“The boost to Mabe's top-line growth and margins, coming from a stronger-than-expected cycle in the home appliance industry globally, has been the key driver of the company's record-high financial performance in the last 12 months. Credit metrics have strengthened to unprecedented levels, and Mabe now has ample financial flexibility that would cushion an unexpected downturn in demand, or even a temporary increase in growth investments that require additional debt, which we see unlikely at this time,” the agency said in a press release.

S&P said it sees Mabe’s debt to EBITDA to be comfortably below 2x and funds from operations to debt to stay above 60%,

The outlook is stable.

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