CHICAGO--(BUSINESS WIRE)--Fitch Ratings has placed the following ratings for Gruma, S.A.B. de C.V. (Gruma) on Rating Watch Positive:
--Foreign currency long-term Issuer Default Rating (IDR) 'B+';
--Local currency-long term IDR 'B+';
--Perpetual bonds issuance for USD300 million 'BB-/RR3'.
The rating action follows Gruma's announcement of its intention to sell a majority portion of its 8.8% stake ownership in Grupo Financiero Banorte, S.A.B. de C.V. (Banorte; rated 'BBB/F2' by Fitch) equivalent to 177.5 million shares; the market value is estimated to be above USD700 million. Gruma will use the proceeds from this transaction to pay down debt, resulting in an improved financial position. As of Sept. 30, 2010, the company reported cash and marketable securities of MXN916 million and total debt of MXN19.5 billion, of which MXN1.9 billion was short term. For the latest 12 months (LTM) ended Sept. 30, 2010, Gruma's total debt/EBITDA ratio was 4.4 times (x), while its net debt/EBITDA ratio was 4.2x.
The Rating Watch for Gruma will be resolved after the transaction is completed, subject to the review of further material information, and could result in a rating upgrade.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Corporate Rating Methodology' dated Aug. 16, 2010
Applicable Criteria and Related Research:
Corporate Rating Methodology
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=546646
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