OREANDA-NEWS. Beginning in June 2016, Latin American high yield corporates face a wave of maturities at a time when the environment is at high risk for refinancings, according to a new Fitch Ratings report.

"With USD19 billion in high yield maturities falling due from June 2016 to the end of 2017, refi risk is high given the volatile economic conditions expected to play out over the next two to three years," said Jay Djemal, Director. "Investor risk appetites naturally reflect the challenging macroeconomic conditions - and in the case of Brazil, these challenges are exacerbated by ongoing political uncertainty."

In Brazil, the lowest-rated companies are expected to encounter the highest hurdles to refinance with suitable terms, if at all. Without a sustained economic recovery and a turnaround in political conditions, access to credit should prove difficult.

Brazilian bond maturities remaining in 2016 total USD2.4 billion, with a more significant USD9 billion due in 2017 and USD11 billion due in 2018. Of the USD22.4 billion due over this period, over USD20 billion is high-yield.

Following record issuance of USD262 billion between 2011 and 2014, LatAm corporate notes and bonds amortizing from June 2016 to 2030 total over USD312 billion, with over two-thirds -- USD207 billion -- of maturities between 2019 and 2024, peaking in 2021 when USD40 billion falls due.

Bond issuance spiked during the first half of 2016 with over USD22 billion issued compared with just USD5 billion during the second half of 2015.