Fitch: Peruvian Corporates Enjoy Robust Liquidity and Declining Leverage

CHICAGO--()--As detailed in Fitch Ratings' new report, Peruvian corporates, with the exception of two mining and three 'B+' or lower rated companies, have all achieved a Stable Outlook based on strong liquidity and shrinking leverage.

"Three Rating Outlooks in Fitch's Peruvian corporate portfolio were revised to Stable from Negative during the first eight months of 2016," said Josseline Jenssen/Director. "Today, Fitch's corporate portfolio reports around 79% of companies with Stable Outlooks, while 21% have Negative Outlooks."

Liquidity is robust with the majority of corporate debt maturities not due in the next five to seven years. Other benefits include availability of uncommitted credit lines for working capital financing and access to commercial paper and bond issuance in the liquid local market.

Improving leverage ratios are expected, since a large investment cycle has concluded, which should further increase operating cash flow generation. Deleveraging was achieved through improved median revenues and profitability, as companies focused on higher value-added production and successfully executed cost reduction programs.

For more information, see the special report "Peruvian Corporates Credit Indicators - Second Quarter 2016," available on the Fitch Ratings web site at www.fitchratings.com or by clicking on the link.

Additional information is available at www.fitchratings.com

Related Research

Peruvian Corporates Credit Indicators -- Second-Quarter 2016 (Better Times Expected)

https://www.fitchratings.com/site/re/887451

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Contacts

Fitch Ratings
Jay Djemal
Director
+1-312-368-2080
Fitch Ratings, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Josseline Jenssen
Director
+51-1-372-0681
or
Tatiana Sclabos
Analyst
+56 2 2499-3322
or
Media Relations
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Jay Djemal
Director
+1-312-368-2080
Fitch Ratings, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Josseline Jenssen
Director
+51-1-372-0681
or
Tatiana Sclabos
Analyst
+56 2 2499-3322
or
Media Relations
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com