S&P rates Minera Mexico notes BBB+

S&P said it assigned its BBB+ issue-level rating to Minera Mexico SA de CV’s proposed senior and unguaranteed notes due 2049 for up to $1 billion.

Proceeds will be used for capital expenditures in Mexico and for general corporate purposes.

“The proposed issuance will be senior unsecured and will be contractually subordinated to Minera Mexico’s existing $51 million Yankee bonds due 2028. However, we rate the proposed senior unsecured notes at BBB+, the same level as the issuer credit rating, to reflect our view that there's no significant subordination risk present in the capital structure, because the leverage metric is below 2.0x. On a pro forma basis, the only debt in Minera Mexico’s balance sheet will be the proposed notes and the Yankee bonds,” S&P said in a news release.

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