Fitch snips Grupo Elektra

Fitch Ratings said it lowered Grupo Elektra, SAB de CV's long-term local-currency and foreign-currency issuer default ratings to BB- from BB and its national long-term rating to A(mex) from A+(mex). The agency also downgraded Nueva Elektra del Milenio, SA de CV's (NEM) long-term local-currency and foreign-currency IDRs to BB- from BB.

The downgrade reflects corporate governance practices at Grupo Salinas, which controls Elektra, Total Play and TV Azteca through different entities, Fitch said.

A recent private exchange of Total Play’s unsecured notes that subordinated non-participating noteholders hurt investors. Grupo Salinas has also hurt creditors before. Fitch also noted TV Azteca's selective default on its international bonds and repurchase of local bonds with the cash balance.

The outlook is stable.

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