Fitch cuts, reviews Fenix Power

Fitch Ratings said it downgraded Fenix Power Peru SA's long-term issuer default rating to BB from BBB- and placed the ratings on negative watch.

The agency said the downgrade reflects views that the strength of the parent-subsidiary linkage has deteriorated and the company's standalone credit profile has weaken to a B level rating from the previously assessed BB.

The perception of weaker shareholder support is demonstrated by cash outflows to shareholders, which indicates a less conservative business strategy at a time when Fenix's credit metrics are under pressure, Fitch said.

The rating watch negative indicates that in the absence of additional shareholder support, Fenix's ratings could be downgraded further to a level closer to its standalone credit profile, the agency added.

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