Moody’s cuts Operadora de Servicios Mega

Moody's Ratings said it downgraded Operadora de Servicios Mega, SA de CV, Sofom, ER's corporate family rating to Caa2 from B3, and its long-term local and foreign currency issuer ratings to Caa3 from Caa1, as well as its foreign currency senior unsecured debt ratings to Caa3 from Caa1, with a developing outlook.

The Not-Prime short-term issuer ratings, in foreign and local currency, were affirmed.

Previously, the rating was on review for downgrade.

“The downgrade of Mega's ratings reflects insufficient progress made in securing the necessary funding to refinance its $350 million senior unsecured notes due in February 2025,” the agency said in a news release.

“Extended efforts in restoring its funding plan, coupled with efforts to conserve liquidity, stifle Mega's business growth and performance, and increase the risk of default on the obligations as time constraints intensify.”

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