S&P affirms Axtel

Standard & Poor's said it affirmed the B corporate credit rating on Axtel SAB de CV.

The outlook is negative.

The 3 recovery rating on the company's senior secured debt, indicating 50% to 70% expected recovery in a default, remains unchanged.

The negative outlook reflects the pressure on the company's liquidity as a result of the tight conditions of the new loan and the impact on cash flow of continuing capital expenditure requirements, S&P said.

Despite the company's tight maintenance covenant headroom under its $100 million syndicated term loan, the agency said it believes it will be able to obtain a waiver from its lenders in case of a covenant breach as a result of its good bank relationships.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.