S&P lowers Industrias Unidas view to negative

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

The agency said that the rating action reflects its concern regarding the group's refinancing risk and its weak operating cash-flow generation.

S&P added that its continued concern regarding the company's liquidity has augmented given the increasing working capital needs derived from higher copper prices that have led to higher debt levels and a reduction in cash balances.

The ratings on the company reflect the inherent cyclicality of the construction industry, the company's high leverage, commodity price volatility, competitive pressure on core products and markets, tight liquidity and low operational margins, the agency noted.

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