Vitro Suffers More Ratings Pain

S&P has cut Vitro’s ratings to CC from B minus keeps the outlook negative amid growing fears of default. The agency expects Q4 results to show liquidity and financial performance still under pressure. It also expects Vitro to remain affected by a weak economy in Mexico, the US and Spain, Vitro’s principal markets. S&P analyst Marcela Duenas also thinks it’s likely the company will not be able to pay a $45m February coupon and other near-term debt obligations and that it will need to generate more cashflow for its acquisition of Spain’s Cristal, valued at EUR31m.