MRO Magazine

Fitch: Outlook for Latin American Metals and Mining is Negative


December 9, 2015
By Business Wire News

CHICAGO

Link to Fitch Ratings’ Report: 2016 Outlook: Latin American Metals and Mining (Survival of the Fittest)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=875002

Fitch Ratings has published a new report on the 2016 Outlook for the Latin American Metals and Mining sector.

Fitch expects rating downgrades for the metals and mining industry in Latin America to be driven by pressured cash flow generation and sustained high leverage as commodity prices remain close to, or below, marginal cost, mainly due to oversupply. Event-driven downgrades may also occur, such as in relation to sovereign rating downgrades, in turn partly driven by lower government revenues from the global commodity slump, and/or imposition of hefty environmental fines and penalties. Low-cost players in the region that exhibit strong capital structures and manageable capex are well-placed to emerge from the downturn with stronger earnings and cash flows.

The full report ‘Outlook 2016: Latin American Metals and Mining’ is available at ‘www.fitchratings.com‘.

Additional information is available on www.fitchratings.com

Related Research

2016 Outlook: Global Mining

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=874187

Fitch 50 Latin America (Capital Structure Diagrams and Debt Document Summaries for 50 of the Largest Latin America Leveraged Credits)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=874007

Global Economic Outlook: World Growth Still Standing Despite Emerging Market Weakness

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=874672

Mining – What to Watch

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870774

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Fitch Ratings
Jay Djemal
Director
+1-312-368-3134
Fitch Ratings, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Phillip Wrenn
Associate Director
+1-312-368-2075
or
Media Relations
Alyssa Castelli, New York, +1-212-908-0540
alyssa.castelli@fitchratings.com