TMM: Financial House In Order

Mexico's Transportacion Maritima Mexicana SA said it is in a solid financial position and would have no problem paying off $142 million in senior unsecured notes due Oct. 16. Responding to a downgrade in its local and foreign currency corporate debt and unsecured senior debt to B plus from BB minus by Standard & Poor's, TMM said it could reassure debt holders and stock holders it would continue to post improved cash flow. "We have full confidence that we can comply with all our commitments," TMM President Jose Serrano said in a statement. "We think it was bad timing for this (S&P's) announcement." S&P's said its downgrade reflected "the continued deterioration of TMM's financial profile." TMM said it believed S&P's had not taken into account $86.3 million it recently received from asset sales and the securitization of its assets. "Cash payments, guaranteed or prospective, have given us as well as our investors a high degree of security and have enriched our ability to generate constant growth in cash flow," Serrano said.