S&P lifts Penoles debt ratings

S&P said it affirmed the BBB global scale and mxAAA national scale long-term corporate credit ratings on Industrias Penoles SAB de CV (Penoles).

The outlook remains stable.

The agency also said it raised the company’s senior unsecured debt ratings to BBB from BBB- and to mxAAA from mxAA+.

S&P also said it affirmed the BBB long-term corporate credit and issue-level ratings with stable outlook on Fresnillo plc, which is viewed as a core subsidiary of Penoles.

The ratings reflect an expectation that the company will maintain sound operating and financial performance, the agency said.

Penoles has recently completed one of its main projects, the San Julian silver-gold project stage 1, which will increase the company's silver mine production by 10 million ounces, S&P explained.

Along with the recent upward revision of price assumptions for metals, these factors drive expectations for continued strong operating cash flow that will fund the company’s capital-investment requirements and dividend distributions, the agency said.

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