S&P lowers FLAR view to negative

S&P said it revised the outlook on Fondo Latinoamericano de Reservas (FLAR) to negative from stable.

The agency also said it affirmed the long- and short-term issuer credit ratings on FLAR at AA/A-1+ and removed them from under criteria observation.

The negative outlook reflects the company's exposure to Venezuela, which remains largely counterbalanced by the company’s extremely strong financial risk profile, S&P said.

The negative outlook also reflects a view that there is at least a one-in-three probability that Venezuela arrears will exceed 180 days over the next 24 months, which would trigger deterioration in FLAR's enterprise risk profile and could lead to possible two-notch downgrade, 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.