Research Update: Controladora Mabe, S.A. de C.V. 'BBB-' Ratings Affirmed, Outlook Remains Stable

Mexico-based home appliance company Controladora Mabe S.A.B. de C.V. (Mabe) has been posting better-than-expected results in the past 18 months, which helped improve the company's key credit metrics and liquidity. A stronger financial risk profile puts Mabe in a comfortable position to cope with the COVID-19 crisis, and we expect credit metrics to remain resilient even under a hypothetical downside scenario of a pronounced top-line contraction. On March 24, 2020, S&P Global Ratings affirmed its long-term 'BBB-' global scale issuer credit rating on Mabe. At the same time, we affirmed our 'BBB-' issue-level rating on Mabe's $370 million senior unsecured notes due 2028. The stable outlook on Mabe reflects our expectations that it will be able to protect its key

...- Mexico-based home appliance company Controladora Mabe S.A.B. de C.V. (Mabe) has been posting better-than-expected results in the past 18 months, which helped improve the company's key credit metrics and liquidity. - A stronger financial risk profile puts Mabe in a comfortable position to cope with the COVID-19 crisis, and we expect credit metrics to remain resilient even under a hypothetical downside scenario of a pronounced top-line contraction. - On March 24, 2020, S&P Global Ratings affirmed its long-term '###-' global scale issuer credit rating on Mabe. At the same time, we affirmed our '###-' issue-level rating on Mabe's $370 million senior unsecured notes due 2028. - The stable outlook on Mabe reflects our expectations that it will be able to protect its key credit from supply chain interruptions and demand risks metrics in the next 12 months. We expect Mabe to maintain debt to EBITDA at about 2.0x and funds from operations (FFO) to debt close to 45%....

Research Update