Fitch cuts Masisa

Fitch Ratings said it downgraded Masisa SA's foreign- and local-currency issuer default ratings to BB from BB+, and affirmed its long-term national scale ratings at A-(cl), national scale rating of bond line No. 355, No. 356, No. 439, No. 440 and No. 560 at A-(cl), short-term rating at F1(cl) and equity rating at level 2.

The outlook is stable.

The ratings reflect Masisa's continued weak credit ratios for the category as well as an increasingly negative operating environment in Venezuela and the risks of operating in Argentina, Fitch said.

The company's risk profile still remains consistent with the national scale rating of A-(cl), which provides a moderately wider range of credit risk on the national scale, the agency said.

The ratings also incorporate the expectation that Masisa will be able to offset some of the negative impact of the Venezuelan devaluation on its consolidated EBITDA in 2010 due to a sound recovery of Latin American markets, especially Brazil and Chile, Fitch added.

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