Grupo Vasconia Receives Credit Downgrade
Grupo Vasconia, a manufacturer of aluminum and steel home goods and other products, received a credit rating downgrade from Fitch Ratings following its declaration in mercantile bankruptcy.
Fitch, based in New York, lowered Vasconia’s credit rating from ‘RD’ (restricted default) to ‘D(mex)’ (default).
Fitch mentioned that after Vasconia’s debt restructuring concludes, they will review their projections to reflect the new capital structure and credit profile.
Viva Aerobus Expands Reach through Codeshare Alliance
Viva Aerobus, Mexico’s low-cost airline, signed a codeshare agreement with Aerus, a regional airline based in Monterrey, to provide passengers with more destinations and better connections across the country.
This new connectivity allows Viva Aerobus passengers to access Aerus’ destinations, thus expanding their route network with new options for business travelers.
The codeshare agreement covers 130 routes to 37 domestic and international destinations.
Quálitas Shares Experience Significant Decline
Quálitas, Mexico’s largest auto insurer, saw a 7.29% drop in shares on Thursday at the Mexican Stock Exchange, with no specific reason given for the decline.
Quálitas shares closed at 217.58 pesos per unit, marking its worst trading day on the BMV since June 4, 2020, when it lost 7.55% amidst the COVID-19 pandemic.
The decline in Quálitas shares occurred on a day when the local market reference index, the S&P/IPC BMV, fell 1.88% to 56,866.76 points, while the FTSE-BIVA dropped 2.10% to 1,149.82 units.
FEMSA Aims to Transform DK Retail into Oxxo
Fomento Económico Mexicano (FEMSA) plans to transform the majority of DK stores into Oxxo, its convenience store brand, following the acquisition of DK’s retail business in the United States in 2024.
FEMSA stated that it has converted 15 DK stores into Oxxo, with the first Texas unit showing significant double-digit sales and traffic increases, along with similar gains in other converted units.
Should new openings occur, they would be limited to under 10 units this year for testing and observation purposes.
In August of the previous year, the Regio-based conglomerate announced an agreement with energy downstream company Delek US Holdings to acquire its retail operation, consisting of 249 DK convenience stores primarily located in Texas, for $385 million net of cash and debt, including inventory acquisition.
Key Questions and Answers
- What is the main news? Grupo Vasconia received a credit downgrade, Viva Aerobus expanded its reach through a codeshare alliance with Aerus, Quálitas shares experienced a significant decline, and FEMSA aims to transform DK retail stores into Oxxo.
- Who is Grupo Vasconia? Grupo Vasconia is a manufacturer of aluminum and steel home goods and other products.
- Why is the credit downgrade significant? The downgrade may impact Vasconia’s ability to secure financing and could lead to higher borrowing costs.
- What does the Viva Aerobus-Aerus codeshare agreement entail? The agreement allows passengers to connect more seamlessly between the two airlines’ networks, expanding route options for travelers.
- Why did Quálitas shares decline? There is no specific reason provided for the 7.29% drop in Quálitas shares on the Mexican Stock Exchange.
- What is FEMSA’s plan for DK retail stores? FEMSA intends to convert most DK stores into its Oxxo convenience store brand following the acquisition of DK’s U.S. retail business.
