Moody’s Lowers Maxcom

Moody’s has lowered Maxcom’s rating to Ca from Caa1, it says. The move follows the Mexican telecom’s announcement that its recently closed debt and equity tender offers did not meet required minimums, and that it would need to seek strategic alternatives, such as chapter 11. Following a sale to private equity firm Ventura Captial Privado last year, Maxcom was counting on the tender – offering to replace debt due next year for new 2020 bonds – to meet a June coupon payment. “The current weak position of Maxcom’s liquidity ($8.5m in cash available as of March 31) and the limited perspective for a solution in the short term raises the possibility that the company can’t make its next interest payment of about $11m scheduled for June 15,” Moody’s says. The agency also points to weak sales growth and low revenue. The outlook is negative.