Research Update: Controladora Mabe S.A. de C.V. Upgraded To 'BBB' On Stronger Credit Metrics And Financial Discipline; Outlook Stable

A stronger cycle than we expected in the home appliance industry across Mexican distributor Controladora Mabe S.A.B. de C.V.'s key markets has boosted revenue and margins, and its credit metrics have strengthened to unprecedented levels with debt to EBITDA reaching 1x. Even as the industry cycle normalizes, we think that Mabe will keep its credit metrics well within the thresholds for its stronger financial risk profile. Mabe's record of financial discipline and debt management has improved its leverage metrics and its liquidity headroom, and we expect further commitment to credit protection measures that sustain its revised financial risk profile. On Oct. 29, 2021, S&P Global Ratings raised its long-term issuer credit rating on Mabe and the issue-level rating on the

...- A stronger cycle than we expected in the home appliance industry across Mexican distributor Controladora Mabe S.A.B. de C.V.'s key markets has boosted revenue and margins, and its credit metrics have strengthened to unprecedented levels with debt to EBITDA reaching 1x. - Even as the industry cycle normalizes, we think that Mabe will keep its credit metrics well within the thresholds for its stronger financial risk profile. - Mabe's record of financial discipline and debt management has improved its leverage metrics and its liquidity headroom, and we expect further commitment to credit protection measures that sustain its revised financial risk profile. - On Oct. 29, 2021, S&P Global Ratings raised its long-term issuer credit rating on Mabe and the issue-level rating on the company's senior unsecured debt to '###' from '###-'. - The stable outlook reflects our expectation that Mabe will deliver sustained organic growth on the back of a strong performance of the appliance industry in key...

Research Update