'Credit protection measures have stayed relatively unchanged for
Capital markets have been challenging for
Default activity in the first half of 2014 consists of Sifco, a Brazilian supplier to the automobile industry, and Aralco, a sugar and ethanol producer located in
Following Aralco's default, credit conditions remain difficult for Brazilian sugar and ethanol producers. Operating cash flows are weak, as record sugar levels have resulted in low global sugar prices. Capital expenses are high and free cash flow is negative. Companies that tapped the market recently such as Virgolino (GVO) and Tonon had to settle for very high coupon levels.
For more information, a special report titled 'Latin America Leveraged Finance Stats Quarterly' is available on the Fitch Ratings web site at www.fitchratings.com.
Additional information is available at 'www.fitchratings.com'.
70 W Madison Street
Source: Fitch Ratings
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