S&P ups Industrias Unidas outlook to stable

Standard & Poor's said it affirmed its B long-term corporate credit rating on Industrias Unidas SA de CV and revised the outlook to stable from negative.

The agency noted that the rating action follows the successful issuance of Industrias Unidas' $200 million senior unsecured notes due 2016, adding that proceeds from the notes will be used to refinance existing debt.

According to S&P, the ratings on Industrias Unidas reflect the inherent cyclicality of the construction industry, commodity price volatility, competitive pressure on core products and markets, low operational margins and high leverage relative to its operating cash flow generation.

These factors are partially offset by the company's leading market positions in Mexico and the United States, product mix and some geographic diversification in the manufacturing and distribution of copper tubing, copper-alloy products, valves, controls, watt-hour meters, wire and cable and electrical devices, the agency added.

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