Fitch: Peruvian Corporates Enjoy Robust Liquidity and Declining 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.
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