S&P drops Mexarrend

S&P said it lowered its long-term global scale issuer credit rating on Mexarrend SAPI de CV to D from CC. S&P also downgraded the national scale rating to D from mxCC but kept the CC issue-level rating on the international senior unsecured notes on CreditWatch negative.

“We lowered the issuer credit rating to D after the lender didn't pay principal and interest of about Ps. 85 million on its short-term notes due Jan. 19, 2023, issued in the Mexican debt market. Additionally, the rating on the lender's international senior unsecured notes remains at CC on CreditWatch Negative. We believe this action results in a general default, given Mexarrend's announcement that it won't pay its financial obligations as they come due,” S&P said in a press release.

Mexarrend reported it won't make the interest payment on its 2024 senior unsecured notes on Jan. 24.

“Based on the company's announcement, we don't expect these interest payments to occur within the applicable grace periods. The company will initiate conversations with the short-term debtholders and senior bondholders to address liquidity constraints,” the agency said.

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