Latin American corporate credit indicators point toward varying leverage trends across the region, with the majority of countries experiencing stabilizing and decreasing leverage, Fitch Ratings has affirmed.
"Following a heavy election cycle in 2018, corporates across the region are benefiting from greater clarity in the trajectory of their respective economies," said Director Jay Djemal.
"Corporate leverage in Argentina has increased due to peso depreciation, while Brazilian, Colombian, and Peruvian companies see an ongoing deleveraging trend. Chile's corporate leverage ratios have stabilized, while Mexican corporates exhibit among the lowest leverage in the region, but could be challenged by potential economic deterioration," he added.
According to Fitch, Peruvian corporates issued approximately US$1.9 billion through first-half 2018, due to first-time issuers Peru LNG, InRetail Pharma, and Hunt Oil Company of Peru, whereas no debt issuance has occurred to date in 2019. Hunt was the last of these companies to issue, pricing at the end of May before a marked slowdown in regional bond activity.
Editor's note: Based on information provided by Fitch Ratings.