Fitch cuts Volcan

Fitch Ratings said it downgraded Volcan Compania Minera SAA's long-term foreign and local-currency issuer default ratings to BB from BBB-.

“The downgrade is due the unfavorable environment for selling assets and raising cash through equity, created by the coronavirus pandemic, as well as the pressure placed upon the company's cash flow and liquidity from falling zinc prices and operational stoppages related to government measures to slow the spread of the virus. Prior to the crisis, Volcan had intended to reduce its net debt through extraordinary measures such as selling non-core assets or pursuing equity sources in order to meaningfully improve its capital structure,” said Fitch in a press release.

The outlook is negative.

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