S&P downgrades Coazucar

S&P said it lowered the issuer credit and issue-level ratings on Corporacion Azucarera del Peru SA (Coazucar) to B- from B+.

Coazucar faces increasing liquidity pressures due to a weak operating performance, which dents cash flows, S&P said.

In 2018, Coazucar's operating performance continued to suffer from low international sugar prices and production that acted as a drag on revenue and profitability.

Despite Coazucar's efforts to increase its production and improve its cost structure, its operating and financial results have been below expectations, the agency said.

The negative outlook reflects a view that the company's operating performance remains exposed to sluggish sugar prices and a slow recovery in production, which would prevent an improvement in profitability and further erode liquidity, the agency said.

© 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.