Fitch downgrades Masisa

Fitch Ratings said it downgraded the long-term foreign and local currency issuer default rating of Masisa SA to B- from B and its national long-term rating to BB(cl) from BBB-(cl). Also, Fitch placed them on rating watch negative.

At the same time, Fitch withdrew Masisa’s IDRs as they are no longer considered to be relevant to the agency’s coverage, Fitch said.

“The downgrade reflects Masisa’s weak operating metrics and the negative impact upon the company’s credit profile due to the coronavirus pandemic, which will add more pressure to a company that had weak operating results in 2020 and during the first quarter of 2020,” the agency said in a press release.

The RWN considers Masisa’s poor liquidity to face the current health crisis in its main markets, the strong dependence of the external sources of financing in the short term, the reliance of the company in the funds coming from the Chilean Forestry asset sale, and the uncertain effect the health crisis will have in the company’s metric even after the transaction concludes, Fitch said.

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