Vitro Earns Ratings Upgrade

Following the success of its upsized $1 billion debt offering last week, Mexican glassmaker Vitro has earned a ratings upgrade. Fitch Ratings has upgraded Vitro’s local and foreign currency Issuer Default Ratings (IDR) to B from CCC and has assigned a B+ rating to the company’s $1 billion proposed notes offering. Fitch noted that the upgrades “reflect the improvement in the company’s capital structure and debt profile, which significantly lowers refinancing risk and eliminates structural subordination following the takeout of secured operating subsidiary debt”. Last week, the company placed one of the largest high-yield corporate issues in emerging markets and saw orders totaling $5.25 billion. The issue, which was expanded from an original $750 million, means the company will not need to seek additionally financing from bank loans. The money raised will help refinance existing debt and improve its capital structure.