S&P lifts Zacapa

S&P said it raised its ratings for Zacapa, its term loan and revolver to B from B-. The recovery rating on the loans remains at 3, reflecting about a 60% recovery (rounded estimate) in default.

“The upgrade reflects the group's solid operational and financial performance and our expectation that Zacapa will be able to deliver debt to EBITDA comfortably below 6x from 2023. More precisely, we forecast S&P Global Ratings-adjusted debt to EBITDA will decline to 5.5x in 2023 and to about 5x in 2024, supported by solid profitability, with EBITDA margins exceeding 50% and good visibility over revenue generation,” the agency said in a press release.

The outlook is stable.

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