Fitch cuts Metro and EFE

Fitch Ratings said it downgraded the long-term foreign-currency issuer default rating to A- from A for Empresa de Transporte de Pasajeros Metro SA and Empresa de los Ferrocarriles del Estado de Chile (EFE).

Concurrently, Fitch downgraded Metro’s and EFE’s long-term local currency issuer default rating to A- from A+.

Fitch downgraded four Metro international bonds and one EFE international bond to A- from A.

“The downgrades reflect Fitch’s action on the sovereign on Oct. 15, when it downgraded Chile’s IDRs to A-stable. This action reflects the weakening of public finances in the wake of secular pressures to increase social spending in the aftermath of widescale protests in October-November 2019, which have been compounded by the economic downturn precipitated by the coronavirus pandemic,” Fitch said in a press release.

The agency revised the outlooks to stable from negative.

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