Fitch: Latin America Corporate Bond Maturities
09 February 2016 - 09:42AM
Business Wire
Latin America corporates face significant challenges in 2016,
according to a new Fitch Ratings special report.
Companies have cut capital expenditures dramatically and have
slashed dividends during 2014 and 2015. This will not allow them to
cut costs dramatically in an effort to generate positive free cash
flow during 2016. As a result, many issuers will remain dependent
upon lenders to refinance their debt.
"Refinancing risk is extremely high and default risk is
climbing," according to Diana Barriga, Analyst at Fitch.
"Latin America corporates face $16 billion of cross border bond
amortizations during 2016, a sharp increase from $6 billion the
prior year. Brazilian credits are the most vulnerable with 53% of
these issuers having a Rating Outlook of Negative."
High yield issuers facing maturities in 2016 include: AES
Panama, Arcos Dorados, Arendal, Camargo Correa, Ceagro Agricola,
SABESP, JBS, Marfrig, Oi, Petrobras and PDVSA. The pressure on
Latin America issuers will not subside in 2017 as an additional $20
billion of cross border debt matures.
Additional information is available on www.fitchratings.com
Latin American Corporate Bond Maturities
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=877597
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Fitch RatingsDiana Barriga, +1 312-606-2319AnalystFitch Ratings,
Inc.70 W. Madison StreetChicago, IL 60602orJoe Bormann, CFA, +1
312-368-3349Managing DirectororMedia Relations, New YorkElizabeth
Fogerty, +1 212-908-0526elizabeth.fogerty@fitchratings.com