S&P downgrades Masisa to B+

Standard & Poor's said it lowered its ratings on Masisa SA to B+ from BB-.

The outlook remains negative.

S&P said the downgrade incorporates its view of Masisa's weaker liquidity position due to lower consolidated cash generation. This in turn is the result of the current economic slowdown and currency devaluation in the countries where the company operates, and its exposure to Argentina and Venezuela, whose laws make it more difficult to repatriate cash, which Masisa could use to repay consolidated debt.

Nevertheless, the company was able to repatriate dividends from Argentina totaling $38 million in 2013 and $13 million in 2014, the agency said.

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