Research Update: Sixsigma Networks Mexico S.A. de C.V. (KIO Networks) Upgraded To 'B+' From 'B' On Improved Liquidity; Outlook Stable

Mexico-based information technology (IT) managed and data services provider Sixsixgma Networks Mexico S.A. de C.V. (KIO Networks) has reduced its short-term debt by about 85% since it was acquired by I Squared Capital (ISQ; not rated) on Nov. 21, 2021, lowering short-term refinancing risks. At the same time, the company's cash flow has improved because it's expanded its relationships with private-sector clients and materially expanded capacity for its data center segment, funded through equity injections. We expect KIO Networks to sustain increased liquidity headroom and stronger credit metrics. On Feb. 28, 2023, S&P Global Ratings raised its global scale issuer and issue-level ratings on KIO Networks to 'B+' from 'B'. The stable outlook reflects our expectation that KIO Networks will

...- Mexico-based information technology (IT) managed and data services provider Sixsixgma Networks Mexico S.A. de C.V. (KIO Networks) has reduced its short-term debt by about 85% since it was acquired by I Squared Capital (ISQ; not rated) on Nov. 21, 2021, lowering short-term refinancing risks. - At the same time, the company's cash flow has improved because it's expanded its relationships with private-sector clients and materially expanded capacity for its data center segment, funded through equity injections. We expect KIO Networks to sustain increased liquidity headroom and stronger credit metrics. - On Feb. 28, 2023, S&P Global Ratings raised its global scale issuer and issue-level ratings on KIO Networks to 'B+' from 'B'. - The stable outlook reflects our expectation that KIO Networks will maintain adequate liquidity, underpinned by the lower short-term debt and working capital outflows, as well as the support for expansion investments stemming from equity injections from its new ownership....

Research Update