Research Update: Sixsigma Networks Mexico (KIO Networks) Downgraded To 'B' From 'B+' On Cash Shortfall, Outlook Negative

Mexico-based IT managed and data services provider Sixsixgma Networks Mexico S.A. de C.V. (KIO Networks) reported a 10% year-to-date revenue decrease as of Sept. 30, 2020. At the same time, its short-term debt increases 9.4% on a year-over-year (yoy) basis. KIO was unable to compensate for its high cash requirements through either increased cash flows or refinancing or reducing its short-term debt. On April 5, 2021, S&P Global Ratings lowered its global scale issuer and issue-level ratings on KIO Networks to 'B' from 'B+'. The negative outlook on KIO reflects its scant protection against cash shortfalls. This is primarily due to the company' low cash balance as of Sept. 30, 2020, working capital outflows, and high short-term debt maturities, which

...- Mexico-based IT managed and data services provider Sixsixgma Networks Mexico S.A. de C.V. (KIO Networks) reported a 10% year-to-date revenue decrease as of Sept. 30, 2020. At the same time, its short-term debt increases 9.4% on a year-over-year (yoy) basis. KIO was unable to compensate for its high cash requirements through either increased cash flows or refinancing or reducing its short-term debt. - On April 5, 2021, S&P Global Ratings lowered its global scale issuer and issue-level ratings on KIO Networks to 'B' from 'B+'. - The negative outlook on KIO reflects its scant protection against cash shortfalls. This is primarily due to the company' low cash balance as of Sept. 30, 2020, working capital outflows, and high short-term debt maturities, which could translate into a weak liquidity position in the near term....

Research Update