Grupo LALA's Credit Ratings Affirmed on 'AA (mex)' by Fitch and 'HR AA' by HR Ratings Stable Perspective
MEXICO CITY, Feb. 22, 2019 /PRNewswire/ -- Grupo LALA, S.A.B. de C.V., a Mexican Company focused on healthy and nutritious foods ("LALA") (BMV: "LALAB"), today announced that both Fitch and HR Ratings credit rating agencies have reaffirmed LALA's 'AA' credit rating.
Fitch Ratings has ratified Grupo LALA's long-term national scale 'AA (mex)' rating with Stable Perspective. Concurrently, it affirmed the rating of the issuances of stock certificates LALA 18, LALA 18-2 and LALA 18-3 in 'AA (mex)'.
HR Ratings affirmed its 'HR AA' rating for Grupo LALA, also with a Stable Perspective. It has also assigned the 'HR1' rating to the LALA 18, LALA 18-2 and LALA 18-3 stock certificates.
Alberto Arellano, Grupo LALA's Chief Financial Officer, commented: "The affirmation of our Fitch and HR Ratings credit ratings is a clear endorsement of LALA's financial standing and of the successful strategies we have begun implementing. LALA has been managing its capital structure with the overall aim of maintaining an investment grade credit profile, which Fitch and HR Ratings have reaffirmed."
The ratings reflect LALA's strong business position in the dairy industry in Mexico, supported by a portfolio of highly recognized brands, a diversified product base and a vertically integrated distribution network. The rating's report also cites its geographic diversification, with operations in Brazil, Central America and the United States.
The reports also note that LALA began implementing strategies in 2018 focused on improving profitability in Mexico and Brazil, and has restructured its operations in Central America and the United States. Fitch projects that the adjusted gross and net leverage indicators of the company will be around 2.9 times (x) and 2.7x, respectively, by the end of 2019.
HR Ratings cites the Company's recent change in senior management and the expected gradual decrease in LALA's debt levels with the expectation that LALA will maintain a healthy and a stable debt structure moving forward.
For more information:
David González Peláez and Elisa Manzato
[email protected]
Tel: +52 55 9177 5900
About LALA
Grupo LALA, a Mexican company focused on the healthy and nutritious food industry, has more than 65 years of experience in the production, innovation and distribution of milk, dairy products and beverages at the highest levels of quality. LALA operates 31 production plants and 176 distribution centers in Mexico, Brazil, the United States and Central America. The Company is supported by more than 38,000 employees. LALA operates a fleet of more than 7,000 units for the distribution of more than 600 products that reach more than 578,000 points of sale. LALA®, Nutri Leche® and Vigor® appear in its extensive brand portfolio.
For more information visit: www.lala.com.mx
"Grupo LALA is listed on the Mexican Stock Exchange under the ticker "LALAB"
SOURCE Grupo LALA, S.A.B. de C.V.
Share this article