Fitch alters CCU outlook to negative

Fitch Ratings said it revised its outlook for Compania Cervecerias Unidas SA to negative from stable and affirmed its A- long-term foreign- and local-currency issuer default ratings. The agency also affirmed the ratings on CCU’s senior unsecured debt, including the A- rating on its $600 million of 3.35% bonds due 2032.

“The negative outlook reflects a delay in the recovery of results negatively impacting net leverage metric to a level that is higher than historical averages of 0.4x in 2019-2021. Downside risk is also exacerbated by continued challenges in pricing strategies and an improving but still high inflation in cost of sales, affecting profitability recovery going forward,” Fitch said in a statement.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.