S&P: TFM on negative watch

Standard & Poor's said it placed its B long-term corporate credit rating on TFM SA de CV on CreditWatch with negative implications.

S&P said the CreditWatch listing reflects S&P's concerns about TFM's inability to meet certain financial covenants under its term loan facility and CP program.

"Although the company is currently negotiating with its lenders to obtain waivers, Standard & Poor's is concerned about the potential impact of this event on TFM's financial profile," said S&P credit analyst Juan P. Becerra.

The NAFTA economic deceleration environment continues to hurt the performance of TFM's operations. The year-over-year drop in the company's numbers reflects lower sales in the automotive segment and higher raw materials costs, such as diesel fuel.

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