Senda Liquidity Seen Tight but Manageable

Liquidity for Mexican transport firm Grupo Senda is tight, but should be manageable, according to Fitch, which affirms its B+ rating and keeps a stable outlook. “Grupo Senda’s ratings reflect the company’s relatively high financial leverage and its solid competitive position as a leading provider of intercity bus passenger services in Mexico,” says the agency. It adds that Senda is vulnerable to devaluation in the MXP, since it generates roughly 90% of revenues in local currency and has most of its debt denominated in USD. The company had MXP142m of cash and marketable securities and MXP419m of short-term debt as of June 30, says Fitch. It also has access to committed credit lines in excess of MXP100m. Senda’s $150m 10.5% of 2015 was bid Friday at 50, down 10 points since October 17, according to Credit Suisse.