S&P ups Impsa outlook to positive

Standard & Poor's said it revised its outlook on Industrias Metalurgicas Pescarmona SAIC y F to positive from stable, while affirming the corporate credit rating on the company at B-.

"Impsa is consolidating its wind generation division in Brazil, a move which we believe strengthens its business risk profile," said S&P credit analyst Diego Ocampo.

"We believe the company's credit quality will benefit from growing exposure to Brazilian power markets, and that its financial flexibility may improve following the recent equity sales of some power generation projects."

The ratings on South American hydro and wind turbine producer Impsa reflect the company's expansionary business model, which often limits free cash flow generation and causes leverage to fluctuate, the agency noted.

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