Fitch 10 Most Distressed LatAm Corporates: Closing Brazil, Mexico Could Benefit Atic
OREANDA-NEWS. Weak operating performance in Brazil and Mexico in conjunction with soft currencies in those markets have pressured the results of Grupo Embotellador Atic S.A. (Atic), according to the latest report in Fitch's 10 report series 10 Most Distressed LatAm Corporates.
One report will be released each day through Feb. 12th per the schedule found at the bottom of this release.
"If Atic would close its operations in Brazil and Mexico, its free cash flow for 2016 would be in the high single digits and net leverage would decline to about 5.9x; this compares positively to a negative free cash flow and a net leverage of around 6.5x if these markets remain in operation," said Cristina Madero/Associate Director.
Last year was an extremely harsh year for Atic, with growth in most of its operating markets weak and currencies in Colombia, Indonesia, Brazil and Mexico depreciating sharply. Atic is expected to generate approximately EUR82 million of EBITDA during 2016, a slight increase when compared with Fitch's projection of EUR78 million of EBITDA in 2015.
Fitch's 10 Most Distressed LatAm Corporates series will be released one report per day as follows:
Feb. 1st: Samarco Mineracao S.A.
Feb. 2nd: Companhia Siderurgica Nacional
Feb. 3rd: Pacific Exploration and Production Corporation
Feb. 4th: GOL Linhas Aeresas S.A.
Feb. 5th: Oi S.A.
Feb. 8th: GeoPark Latin America Limited Agencia en Chile
Feb. 9th: Grupo Embotellador Atic S.A.
Feb. 10th: TV Azteca, S.A.B. de C.V.
Feb. 11th: QGOG Constellation S.A.
Feb. 12th: Odebrecht Offshore Drilling Finance Ltd.