Mabe Loses Investment Grade

S&P has lowered the credit rating of Mexican white goods manufacturer Controladora Mabe to BB+ from BBB minus, citing deteriorating credit metrics. “Its financial performance has deteriorated, mainly because of the significant decline in profits from Venezuela, a change in the company’s US exports to a product mix of lower-end products, and a slower-than-expected turnaround of a Brazilian subsidiary,” the agency says. Higher commodity prices, higher marketing expenses and slower global economic growth also hurt Mabe’s prospects. The outlook is stable.