S&P Boosts Iansa, More Positive on Mabe

S&P has upgraded the ratings of Chilean sugar producer Iansa to B minus from CCC+. The outlook is positive. S&P cites the company’s improved financial flexibility and operating performance during the past 2 years and its successful $51m equity increase. “The positive outlook reflects our expectation that we could raise Iansa’s ratings if the company further strengthens its financial flexibility in 2010 and 2011. A reduction in debt position to near $100m by year-end 2010 coupled with a sound cash position would be consistent with the expected credit strengthening,” S&P says. Meanwhile, S&P has changed the outlook on the BBB minus ratings of Mexican household appliance company Controladora Mabe to stable from negative to reflect its improved financial performance and debt reduction and the agency’s expectation that this trend will continue. “In 1Q10, Mabe showed improvement in its sales volumes, trend that we expect to continue throughout the rest of the year, supported by positive growth prospects in Mexico and other key countries within the region, and consolidation of its Brazilian operations,” S&P says.