Fitch lowers Iansa

Fitch Ratings said it has downgraded the following ratings of Empresas Iansa SA: local currency issuer default rating to B- from BB-; foreign currency issuer default rating to B- from BB-; senior unsecured notes due 2012 to B+/RR2 from BB-; national-scale rating to BB- (chl) from BBB-(chl); and national-scale equity rating to Level 4 from Level 3.

All of the ratings remain on rating watch negative.

According to the agency, the rating actions reflect Iansa's failure to meet projected improvements in its financial results as of Dec. 2008.

Although Iansa was able to strengthen its cash flow generation during the fourth quarter of 2008 and reduced its leverage by 11%, Iansa's financial debt/EBITDA ratio equaled 11.3 times, well above the 8.0x expected by Fitch given the scenarios presented by management at year end 2008.

© 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.