Vitro Junked Again

Fitch has cut Vitro to D from C and predicts a 31%-50% recovery in the event of default on the bonds, which it rates CC. This includes $300m in senior notes due 2012, $225m in senior notes due 2013 and $700m in senior notes due 2017. “The rating downgrades follow Vitro’s announcement that it will not make the payment of the certificados bursatiles VITRO 03 for approximately MXP150m plus accrued interest,” says Fitch. “The CC/RR4 rating on Vitro’s senior notes reflects average recovery prospects given default,” it adds.