Fitch: Latin America Corporate Bond Maturities

CHICAGO--(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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View source version on businesswire.com: http://www.businesswire.com/news/home/20160208006406/en/

Fitch Ratings
Diana Barriga, +1 312-606-2319
Analyst
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Joe Bormann, CFA, +1 312-368-3349
Managing Director
or
Media Relations, New York
Elizabeth Fogerty, +1 212-908-0526
[email protected]

Source: Fitch Ratings

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