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

Mexico-based home appliance company Controladora Mabe S.A. de C.V. (Mabe) continues to deliver a solid operating and financial performance, with $4.4 billion in revenues, $471.4 million in adjusted EBITDA, and adjusted leverage of 1.1x in the 12 months ended June 30, 2022. Although we expect increasing macroeconomic headwinds in Mabe's key markets that could continue to lower demand in the next 12-18 months, Mabe's credit metrics and prudent financial policy provide significant headroom for the rating level. The company's new scheduled debt amortizations, following its recent tender offer on 90.87% of its 2028 senior notes, indicate its commitment to further reduce its gross debt and strengthen its balance sheet, in our view, but provide less liquidity cushion. On Oct. 25,

...- Mexico-based home appliance company Controladora Mabe S.A. de C.V. (Mabe) continues to deliver a solid operating and financial performance, with $4.4 billion in revenues, $471.4 million in adjusted EBITDA, and adjusted leverage of 1.1x in the 12 months ended June 30, 2022. - Although we expect increasing macroeconomic headwinds in Mabe's key markets that could continue to lower demand in the next 12-18 months, Mabe's credit metrics and prudent financial policy provide significant headroom for the rating level. - The company's new scheduled debt amortizations, following its recent tender offer on 90.87% of its 2028 senior notes, indicate its commitment to further reduce its gross debt and strengthen its balance sheet, in our view, but provide less liquidity cushion. - On Oct. 25, 2022, S&P Global Ratings affirmed its '###' long-term issuer and issue-level credit ratings on Mabe. - The stable outlook reflects our expectation that Mabe will deliver steady revenue growth in the next 12 months,...

Research Update