LatinNews Daily - 17 June 2020

* International credit rating agency Moody’s Investors Service has indicated that Chile’s non-financial companies have been able to somewhat mitigate the challenges presented by the coronavirus (Covid-19) pandemic due to their strong liquidity prior to March 2020. In a statement, Marcos Schmidt, a Moody’s vice president, said that Chile’s 17 non-financial companies, utilities, and infrastructure issuers that are rated on Moody’s had improved their liquidity risk over 2019 and across the first quarter of 2020, which meant they were “prepared to navigate the difficult scenario”. Producers of extractive commodities, which “remain the key influence on Chile’s economy”, show high or strong liquidity, as do those of pulp, paper, and fertilizer; these companies will “generally stay profitable” over the remainder of the market cycle. Equally, the country’s energy producers have low liquidity risk. Moody’s, which forecasts that Chile’s economy will contract by about 4.6% in 2020, adds that although the Chilean peso has declined some 15% against the US dollar year-on-year to 1 June, Chile’s corporate credit quality has been little affected.

End of preview - This article contains approximately 171 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial