Research Update: Elementia Downgraded To 'BB-' On Higher Leverage And Growing Risk From COVID-19; Ratings Still On Watch Negative - S&P Global Ratings’ Credit Research

Research Update: Elementia Downgraded To 'BB-' On Higher Leverage And Growing Risk From COVID-19; Ratings Still On Watch Negative

Research Update: Elementia Downgraded To 'BB-' On Higher Leverage And Growing Risk From COVID-19; Ratings Still On Watch Negative - S&P Global Ratings’ Credit Research
Research Update: Elementia Downgraded To 'BB-' On Higher Leverage And Growing Risk From COVID-19; Ratings Still On Watch Negative
Published Apr 15, 2020
6 pages (2536 words) — Published Apr 15, 2020
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

We anticipate that a global recession from the coronavirus pandemic will undermine Mexican building materials company Elementia's revenue and cash generation in most of its operations--across its three business units in Mexico, the U.S., and Central and South America. As a result, we no longer forecast a consistent deleveraging trend with adjusted debt to EBITDA consistently below 4.0x in 2020. On April 15, 2020, S&P Global Ratings lowered its issuer credit rating on Elementia to 'BB-' from 'BB'. At the same time, we downgraded its $425 million senior unsecured notes to 'BB-' from 'BB', and affirmed the recovery rating at '3'. We're keeping all of the ratings on Elementia on CreditWatch with negative implications, reflecting a potential further downgrade that

  
Brief Excerpt:

...- We anticipate that a global recession from the coronavirus pandemic will undermine Mexican building materials company Elementia's revenue and cash generation in most of its operations--across its three business units in Mexico, the U.S., and Central and South America. - As a result, we no longer forecast a consistent deleveraging trend with adjusted debt to EBITDA consistently below 4.0x in 2020. - On April 15, 2020, S&P Global Ratings lowered its issuer credit rating on Elementia to '##-' from '##'. At the same time, we downgraded its $425 million senior unsecured notes to '##-' from '##', and affirmed the recovery rating at '3'. - We're keeping all of the ratings on Elementia on CreditWatch with negative implications, reflecting a potential further downgrade that will depend on the depth of the economic recession and duration of COVID-19's effects on Elementia's operating and financial performance. Measures to preserve liquidity will be vital. We will also monitor potential effects...

  
Report Type:

Research Update

Ticker
3255475Z@MM
Issuer
GICS
Building Products (20102010)
Sector
Global Issuers
Country
Region
Latin America
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Elementia Downgraded To 'BB-' On Higher Leverage And Growing Risk From COVID-19; Ratings Still On Watch Negative" Apr 15, 2020. Alacra Store. Jan 27, 2022. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Elementia-Downgraded-To-BB-On-Higher-Leverage-And-Growing-Risk-From-COVID-19-Ratings-Still-On-Watch-Negative-2412983>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Elementia Downgraded To 'BB-' On Higher Leverage And Growing Risk From COVID-19; Ratings Still On Watch Negative Apr 15, 2020. New York, NY: Alacra Store. Retrieved Jan 27, 2022 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Elementia-Downgraded-To-BB-On-Higher-Leverage-And-Growing-Risk-From-COVID-19-Ratings-Still-On-Watch-Negative-2412983>
  
US$ 225.00
$  £  
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