Research Update: Sixsigma Networks Mexico (KIO Networks) Outlook Revised To Positive; 'B' Ratings Affirmed; Off CreditWatch Positive

As anticipated, Mexico-based information technology (IT) managed and data services provider Sixsigma Networks Mexico S.A. de C.V. (KIO Networks) was acquired by I Squared Capital (ISQ), on Nov. 26, 2021. We expect the new ownership will strengthen the company's liquidity position and capital structure. We therefore revised the outlook to positive, affirmed our KIO Networks global scale long-term issuer credit and issue-level ratings at 'B', and removed them from CreditWatch, where they were placed with positive implications on Aug. 2, 2021, when the acquisition was announced. The positive outlook reflects our expectations that KIO Networks could improve its liquidity after the acquisition, due to the new owner's strategy to reduce short-term debt, improve working capital management, and allow for sustainable

...- As anticipated, Mexico-based information technology (IT) managed and data services provider Sixsigma Networks Mexico S.A. de C.V. (KIO Networks) was acquired by I Squared Capital (ISQ), on Nov. 26, 2021. - We expect the new ownership will strengthen the company's liquidity position and capital structure. - We therefore revised the outlook to positive, affirmed our KIO Networks global scale long-term issuer credit and issue-level ratings at 'B', and removed them from CreditWatch, where they were placed with positive implications on Aug. 2, 2021, when the acquisition was announced. - The positive outlook reflects our expectations that KIO Networks could improve its liquidity after the acquisition, due to the new owner's strategy to reduce short-term debt, improve working capital management, and allow for sustainable expansion investments, through equity injections....

Research Update