TEXT-S&P: Grupo KUO 'BB' rating unchanged after add-on

Thu Dec 6, 2012 5:40pm EST

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Dec 6 - Standard & Poor's Ratings Services said today that its 'BB' issue
rating on Mexico-based conglomerate Grupo KUO S.A.B. de C.V. (KUO;
BB/Stable/--) remains unchanged following the $75 million add-on to its existing
$250 million 10-year senior unsecured notes bearing an annual fixed rate of
6.25%. We don't expect the add-on to increase KUO's gross consolidated debt
because it will use most of the proceeds from the issuance to refinance existing
debt, including its senior unsecured notes due 2017, short term debt and other
long term debt due 2016. In addition, the add-on will help extend the debt's
average debt term to about 8 years from about five, and reduce interest expenses
with lower-interest debt. For a complete credit rationale on KUO, please see
"Grupo KUO, S.A.B. de C.V. 'BB' Global Scale, 'mxA' National Corporate Credit
Ratings Affirmed; Outlook Remains Stable," published on June 5, 2012 on
RatingsDirect on the Global Credit Portal.


CRITERIA AND RELATED RESEARCH
     -- Grupo KUO, S.A.B. de C.V.'s $250 Million Senior Unsecured Notes Rated 
'BB' (Recovery Rating: 3), Nov. 20, 2012
     -- Grupo KUO, S.A.B. de C.V. 'BB' Global Scale, 'mxA' National Corporate 
Credit Ratings Affirmed; Outlook Remains Stable, June 5, 2012
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008

RATINGS LIST

Grupo KUO S.A.B. de C.V. 
 Corporate credit rating          BB/Stable/--
 Senior unsecured notes           BB

Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.
FILED UNDER:
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