S&P takes Clisa ratings off watch

S&P said it removed the ratings for Clisa - Compania Latinoamericana de Infraestructura y Servicios SA from CreditWatch with negative implications.

Clisa recently held a $27 million private placement that will enable it to cancel the $17.8 million bond coming due Oct. 15, and to refinance other debts, the agency said.

“The senior secured private placement of $27 million, issued by its Peruvian subsidiary, Benito Roggio Construcciones y Concesiones SAC (not rated), provides some relief to Clisa’s weak liquidity for the next six months. However, we expect Clisa’s revenue and cash flows to continue eroding due to Argentina’s worsening economic conditions that have shrunk Clisa’s construction business and increased its debt and interest burden, because 80% of its debts are denominated in foreign currency while its cash flows are in pesos,” said S&P in a press release.

S&P affirmed Clisa’s CCC issuer credit and issue-level ratings.

The outlook is negative

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