XIGNUX’S RECENT RESULTS AND STRENGTH UNDERPIN DECISION BY HR RATINGS.
Today, Xignux obtained investment grade rating from HR Ratings, with a local-scale rating of HR AA for the long term and local-scale rating of HR1 for the short term, as well as a global-scale rating of HR BBB- (G), all with stable outlook. This positions Xignux as a solid corporation with strong prospects.
Among the strengths cited by HR ratings in assigning Xignux an investment grade rating were its conservative financial policy, which is intended to lower refinancing risk and financial costs; low leverage; a comfortable maturity profile (just 2% of the debt comes due in less than a year, and the average life of the debt is 4.9 years), a strong liquidity position, in addition to unused committed lines of credit that cover all the company’s financial obligations for the next three years.
“For every one of us at Xignux, this rating is a source of satisfaction, because it reflects the results of decisions made in recent years to focus and diversify our portfolio in the fastest-growing and most profitable businesses,” said CEO Juan Ignacio Garza Herrera. He added that the efforts of all of the people that make up the organization have been instrumental in maintaining this focus and positive energy toward the future.
“This rating gives our investors one more reason to be confident in Xignux’s strong performance, with the certainty that it will continue these solid results and responsible leadership in both the short and long term,” remarked Chief Finance and Administrative Officer Ángel de Soto.
HR Ratings underscored the operating results of the group, which was founded in Monterrey, N.L., supported by the consolidation of operations in the Cable and Transformer divisions, drive by the vigorous advance of the construction, industrial and energy sectors in the United States; and industry trends toward the use of clean energies.
It also mentioned the synergies arising from the extension of the Prolec-GE joint venture with new operations in the United States and Brazil, the growth fueled by recent investments in the Food business that expanded capacity in dairy products and salted snacks, as well as the gradual recovery of some categories post-COVID19.
According to the rating agency, Xignux’s strengths include the strong diversification of its revenue base and solid cash flow generation in the United States. It also cited the leadership position that the group’s companies enjoy in their respective markets, the growth in the level of revenues, with significant improvements in the cost and expense structure, its operating excellence in production processes, and its solid corporate governance together with experienced management.
Seven strengths that make Xignux an industry leader
- Conservative financial policy
- Superior operating results
- Diversified revenue base and cash flow
- Participation in key markets
- Consistent cash flow generation
- Management and Corporate Governance
- Operating Excellence
Xignux is a corporation with more than 26,000 employees with leading businesses in the energy and food industries.
Xignux was founded 65 years ago and currently has operations in five countries; its solutions reach more than 40. www.xignux.com