S&P cuts GFMega

S&P said it lowered its ratings for Operadora de Servicios Mega SA de CV Sofom ER (GFMega) and its senior unsecured notes to CCC+ from B.

The downgrade follows GF Mega terminating its debt exchange offer for its 2025 notes after it failed to reach the 50% minimum participation level, the agency said.

“We believe GFMega still has some time to implement alternative refinancing strategies. Nevertheless, these options remain pending and challenging, increasing the lender's refinancing risk. Therefore, we believe GFMega's liquidity position is pressured, as it faces financial obligations of about $590 million during the next 15 months, which include $352 million of its international bond due February 2025, about $160 million in credit lines, and about $80 million in coupon payments.

The outlook remains negative.

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