Fitch downgrades Volcan

Fitch Ratings said it downgraded Volcan Compania Minera SAA's long-term foreign and local currency issuer default ratings to B+ from BB, as well as its senior unsecured notes due in 2026 to B+ from BB.

The outlook is stable.

The agency said the downgrade reflects Fitch's expectation that the company's gross and net leverage ratios will rise to an average of 4.0x and 3.2x, respectively, over the rated horizon.

The higher leverage is due to higher costs and production volumes below previously projected levels amidst a backdrop of falling prices and capital expenditures that will be needed to sustain volumes, Fitch said.

© 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.