S&P cuts Intcomex to negative

Standard & Poor's said it revised the outlook on Intcomex Inc. to negative from stable and affirmed the B corporate credit rating.

S&P also said it affirmed the B- rating on the company's second-priority senior secured notes. The recovery rating on this debt remains 5, indicating 10% to 30% expected default recovery.

The outlook revision is based on an expectation that weakness in the company's 2012 operating performance will result in less than 15% covenant headroom in the near term, the agency said.

The ratings reflect an expectation that the company's modest earnings and cash flow from operations will limit near-term improvement in the company's highly leveraged financial risk profile, S&P said.

The ratings also consider its relatively narrow geographic presence and second-tier position in the highly competitive and global distribution market, the agency said.

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