Fitch changes Alicorp outlook to negative

Fitch Ratings said it affirmed the BBB foreign currency and local currency issuer default ratings of Alicorp SAA, as well as the BBB rating assigned to its $450 million senior unsecured notes.

The outlook was revised to negative from stable.

Leverage is higher than originally forecast due to higher than expected capex and a deteriorating consumer environment in Argentina, Fitch said. Alicorp's net leverage ratio was 3.7 times as of year-end 2014. Short-term debt increased in order to finance higher inventories and acquisitions.

Following the acquisitions of Pastificio Santa Amalia and Industrias Teal in 2013, Alicorp acquired Peruvian companies Global Alimentos and Molinos Saracolca for $108 million in 2014.

Total debt as of Dec. 31 increased to S/. 2,699,000,000 ($895 million), of which 65% was long-term.

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