S&P revises Coazucar to stable

S&P said it revised the outlook on Corporacion Azucarera del Peru SA (Coazucar) to stable from negative and affirmed its BB- corporate credit and issue-level ratings.

Coazucar's Olmos project finally started full operations in May of this year, after several months of delays. The complex has technified irrigation and an energy generation system that will raise efficiencies and output, S&P said.

Coazucar also strengthened its liquidity, not only through capital contributions from shareholders to complete investments at Olmos, but also through the refinancing of 100 million Peruvian soles in short-term debt that the company had incurred to finance working capital requirements during the first half of the year, the agency explained.

S&P said the outlook revision reflects the stronger liquidity position and credit metrics, and its view that the company has greater flexibility to offset potential margin pressures stemming from declining international reference sugar prices.

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