January 9, 2017 / 7:16 PM / 2 years ago

Fitch Launches Spotlight Series on LatAm Corporates with America Movil

(The following statement was released by the rating agency) CHICAGO, January 09 (Fitch) Today Fitch Ratings launches its Spotlight series of the 20 most "in the news" Latin American issuers, starting with America Movil's struggle to deleverage amidst a difficult operating environment in Mexico. One report will be released each day through Feb. 6, 2017, following the schedule at the end of this release. "Fitch sees no signs of recovery in the Mexican market, due to intense competition leading to a slow deleveraging progress for America Movil during the next two years. Measured shareholder distributions on a long-term basis will be vital in enabling consistent free cash flow generation to reduce leverage," said Alvin Lim, Director. EBITDA recovery in Mexico of at least MXN100 billion, coupled with less than MXN20 billion in shareholder distributions on a consistent basis will enable meaningful free cash flow generation and improve adjusted net leverage toward 2.0x. Stronger-than-expected growth in non-Mexico markets and favorable FX movements could help accelerate deleveraging. The Spotlight series focuses on fundamental credit concerns, delving into the relative exposure to the main risk factors, as well as the implications for each rating. Spotlight topics include Pemex's relationship to the Mexican government and implications of current tax laws; CSN's deleveraging strategy; and GOL after the 2016 limited debt restructuring. These new reports expand upon and replace Fitch's 10 Most Distressed series released during February 2016. Fitch's Spotlight Series on Latin American Issuers will be released one report per day as follows: Jan. 9th -- America Movil S.A.B. de C.V. Jan. 10th -- GOL Linhas Aereas Inteligentes S.A. Jan. 11th -- Avianca Holdings S.A. Jan. 12th -- Grupo IDESA, S.A. de C.V. Jan. 13th -- Companhia Siderurgica Nacional Jan. 17th -- CEMEX, S.A.B. de C.V. Jan. 18th -- Marfrig Global Foods S.A. and Minerva S.A. Jan. 19th -- Odebrecht Engenharia e Construcao S.A. Jan. 20th -- Braskem S.A. Jan. 23rd -- LATAM Airlines Group S.A. Jan. 24th -- Mexichem, S.A.B. de C.V. Jan. 25th -- JBS S.A. Jan. 26th -- Vale S.A. Jan. 27th -- Empresa Nacional de Telecomunicaciones S.A. Jan. 30th -- Digicel Group Limited Jan. 31st -- Petroleos Mexicanos Feb. 1st -- Petroleo Brasileiro S.A. Feb. 2nd -- Ecopetrol S.A. Feb. 3rd -- Petroleos de Venezuela S.A. Feb. 6th -- Offshore Drilling Holding, S.A. Contact: Latin America Spotlight Series Contact Jay Djemal Director, Head of Credit Research Latin America +1-312-368-3134 Fitch Ratings, Inc. 70 West Madison St. Chicago, IL, 60602 Daniel R. Kastholm, CFA Regional Group Head -- Latin America Corporates +1-312-368-2070 America Movil Contact Alvin Lim, CFA Director +1-312-368-3114 Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: elizabeth.fogerty@fitchratings.com. Additional information is available at www.fitchratings.com Related Research Spotlight: America Movil's Deleveraging Slog (Challenging Times Continue in Mexico) here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. 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