Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers N > Headlines for Nueva Elektra del Milenio SA de CV > News item |
Fitch lowers Grupo Elektra
Fitch Ratings said it downgraded Grupo Elektra, SAB de CV's long-term local-currency and foreign-currency issuer default ratings to BB from BB+ and national long-term rating to A+(mex) from AA-(mex).
Fitch also affirmed the national short-term rating at F1+(mex).
At the same time, Fitch said it downgraded Nueva Elektra del Milenio, SA de CV's (NEM) local-currency and foreign-currency IDRs to BB from BB+.
The outlooks for Elektra and NEM were revised to stable from negative.
The downgrade reflects Elektra's weaker corporate governance structure after a default of a related entity (TV Azteca). Elektra indirectly owns 22.5% of TV Azteca and is controlled by the same shareholder group, Grupo Salinas, Fitch said in a news release.
TV Azteca's decision to selectively default on its $400 million bonds by missing a $16.5 million coupon payment while using a portion of its $160 million cash balance to repurchase MXN 1,211 (approximately $58 million) of the outstanding Certificados Bursatiles through a market transaction and to keep current on a related party loan from Banco Azteca highlights potential conflicts of interest and different treatment to creditors, which underscore corporate governance concerns for the group, Fitch said.
© 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.