S&P: Iansa view negative

Standard & Poor's said it revised the outlook on Empresas Iansa SA (BB+) to negative from positive.

The action reflects the higher-than-expected deterioration in the company's financial metrics as a result of weaker cash-flow generation levels and greater use of debt to finance increased working capital needs, according to the agency.

The rating reflects the inherent risks affecting the agriculture commodity business, including international sugar price volatility and climatic risk, the agency said.

Risks are somewhat offset by protection provided by the sugar price band system in Chile and by the improvements in sugar beet productivity, S&P said.

Ratings are also underpinned by the company's good competitive position as the only sugar producer in Chile and as one of the lowest-cost producers of sugar from beets, the agency noted.

The issuer's debt-to-EBITDA ratio fell to 3.7 times in the 12 months ended March from 2.3 times in fiscal 2006.

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