Fitch: Resilient Credit Metrics for Latin America Metals and Mining Companies

CHICAGO--(BUSINESS WIRE)--Latin American metals and mining companies will maintain generally stable credit profiles in 2012 despite higher operating costs, inflation and possible Eurozone crisis effects, according to Fitch Ratings.

The majority of Fitch-rated Latin American metals and mining companies maintained resilient credit profiles during 2011. In response to market challenges, Fitch expects companies will continue to maintain conservative financial policies and sound capital structures, as seen during 2011 with the scaling back of ambitious investment programs.

Global demand for mined products, driven mainly by developing nations, will continue at healthy levels in 2012.

Downside risks to Fitch's view include tightening monetary or fiscal policy in the region, accelerated supply, deterioration in the capital structure of companies pursuing ambitious investment programs, wider contagion from the Eurozone debt crisis, and/or a decline in demand from China. The Rating Outlook for the majority of Fitch-rated issuers in this sector is Stable.

The full '2012 Outlook: Latin American Metals and Mining' is available at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: 2012 Outlook: Latin American Metals and Mining

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=665893

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