Research Update: Elementia S.A.B. de C.V. 'BB-' Ratings Affirmed And Off CreditWatch; Outlook Negative On Recession Risks - S&P Global Ratings’ Credit Research

Research Update: Elementia S.A.B. de C.V. 'BB-' Ratings Affirmed And Off CreditWatch; Outlook Negative On Recession Risks

Research Update: Elementia S.A.B. de C.V. 'BB-' Ratings Affirmed And Off CreditWatch; Outlook Negative On Recession Risks - S&P Global Ratings’ Credit Research
Research Update: Elementia S.A.B. de C.V. 'BB-' Ratings Affirmed And Off CreditWatch; Outlook Negative On Recession Risks
Published Sep 23, 2020
8 pages (3571 words) — Published Sep 23, 2020
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Mexican building materials company, Elementia, has successfully strengthened its liquidity in order to navigate through the pandemic. However, construction activity in its key markets remains vulnerable to the recession through the rest of the year. Elementia's current leverage is elevated for the 'BB-' rating; however, we estimate that its asset sales should allow it to reduce its adjusted debt to EBITDA to near 5.0x by year-end 2020, with a gradual deleveraging toward 2021. On Sept. 23, 2020, S&P Global Ratings affirmed its 'BB-' issuer and issue-level credit ratings on Elementia. The recovery rating on the company's senior unsecured notes remains '3'. We removed all ratings from CreditWatch with negative implications because short-term liquidity risks have decreased, coupled with our expectation

  
Brief Excerpt:

...- Mexican building materials company, Elementia, has successfully strengthened its liquidity in order to navigate through the pandemic. However, construction activity in its key markets remains vulnerable to the recession through the rest of the year. - Elementia's current leverage is elevated for the '##-' rating; however, we estimate that its asset sales should allow it to reduce its adjusted debt to EBITDA to near 5.0x by year-end 2020, with a gradual deleveraging toward 2021. - On Sept. 23, 2020, S&P Global Ratings affirmed its '##-' issuer and issue-level credit ratings on Elementia. The recovery rating on the company's senior unsecured notes remains '3'. We removed all ratings from CreditWatch with negative implications because short-term liquidity risks have decreased, coupled with our expectation that the planned spin-off will not materialize in the next few quarters. - The negative outlook reflects our view that Elementia's operating and financial performance remains exposed to...

  
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 S.A.B. de C.V. 'BB-' Ratings Affirmed And Off CreditWatch; Outlook Negative On Recession Risks" Sep 23, 2020. Alacra Store. Jan 27, 2022. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Elementia-S-A-B-de-C-V-BB-Ratings-Affirmed-And-Off-CreditWatch-Outlook-Negative-On-Recession-Risks-2519675>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Elementia S.A.B. de C.V. 'BB-' Ratings Affirmed And Off CreditWatch; Outlook Negative On Recession Risks Sep 23, 2020. New York, NY: Alacra Store. Retrieved Jan 27, 2022 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Elementia-S-A-B-de-C-V-BB-Ratings-Affirmed-And-Off-CreditWatch-Outlook-Negative-On-Recession-Risks-2519675>
  
US$ 225.00
$  £  
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