Research Update: Elementia S.A.B. de C.V.  Outlook Revised To Negative From Stable On Weaker-Than-Expected Results, 'BB' Ratings Affirmed - S&P Global Ratings’ Credit Research

Research Update: Elementia S.A.B. de C.V. Outlook Revised To Negative From Stable On Weaker-Than-Expected Results, 'BB' Ratings Affirmed

Research Update: Elementia S.A.B. de C.V.  Outlook Revised To Negative From Stable On Weaker-Than-Expected Results, 'BB' Ratings Affirmed - S&P Global Ratings’ Credit Research
Research Update: Elementia S.A.B. de C.V. Outlook Revised To Negative From Stable On Weaker-Than-Expected Results, 'BB' Ratings Affirmed
Published Nov 05, 2018
10 pages (3660 words) — Published Nov 05, 2018
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

In the past 12 months, Mexico-based building materials company, Elementia, posted weaker-than-expected operating and financial results due to the stoppage at its South Carolina cement plant, cost pressures, and sluggish market conditions in some of its Latin America markets. Lower profitability and a higher interest burden are weighing on Elementia's credit metrics. However, we believe that the announced MXN1.5 billion capital increase will temporarily relieve the company's net debt to EBITDA ratio and financial covenants by the end of 2018, before Elementia deploys the funds for expansion projects. We're revising our outlook on Elementia to negative from stable. We're also affirming our 'BB' long-term issuer credit and issue-level ratings on the company. The negative outlook on Elementia reflects the downside

  
Brief Excerpt:

...+ In the past 12 months, Mexico-based building materials company, Elementia, posted weaker-than-expected operating and financial results due to the stoppage at its South Carolina cement plant, cost pressures, and sluggish market conditions in some of its Latin America markets. + Lower profitability and a higher interest burden are weighing on Elementia's credit metrics. However, we believe that the announced MXN1.5 billion capital increase will temporarily relieve the company's net debt to EBITDA ratio and financial covenants by the end of 2018, before Elementia deploys the funds for expansion projects. + We're revising our outlook on Elementia to negative from stable. We're also affirming our '##' long-term issuer credit and issue-level ratings on the company. + The negative outlook on Elementia reflects the downside risks for its operating and financial performance in the next 12 months if the company does not stabilize its operations and profitability, and if it doesn't reduce its debt...

  
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. Outlook Revised To Negative From Stable On Weaker-Than-Expected Results, 'BB' Ratings Affirmed" Nov 05, 2018. Alacra Store. Mar 29, 2024. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Elementia-S-A-B-de-C-V-Outlook-Revised-To-Negative-From-Stable-On-Weaker-Than-Expected-Results-BB-Ratings-Affirmed-2124899>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Elementia S.A.B. de C.V. Outlook Revised To Negative From Stable On Weaker-Than-Expected Results, 'BB' Ratings Affirmed Nov 05, 2018. New York, NY: Alacra Store. Retrieved Mar 29, 2024 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Elementia-S-A-B-de-C-V-Outlook-Revised-To-Negative-From-Stable-On-Weaker-Than-Expected-Results-BB-Ratings-Affirmed-2124899>
  
US$ 225.00
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