Fitch Publishes Latin American Utilities Dashboard
In general, capital expenditure programs for power companies appear to be manageable given solid free cash flow generation and strong liquidity expectations for regional utility companies. Fitch's ratings for Latin American utilities have a built-in expectation of stability for the rest of 2015. Any upgrades or downgrades over the next six months will result from changes in the capital structure of each individual company and, to a lesser extent, from general sector trends. Although a shift from a Stable Outlook for the industry is unlikely, increasing government intervention, coupled with slower-than-expected GDP growth, could result in a Negative Outlook. Positively, these factors are mitigated by moderate hydrocarbon prices for the year.
A complete review of these topics including a review of the dashboard is available at www.fitchratings.com or by clicking the link above.
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