Fitch lowers Gildemeister, notes

Fitch Ratings said it downgraded Automotores Gildemeister SA's foreign currency issuer default rating to CCC from B, local currency issuer default rating to CCC from B, $400 million unsecured senior notes due in 2021 to CCC/RR4 from B/RR4 and $300 million unsecured senior notes due in 2023 to CCC/RR4 from B/RR4.

Fitch said the downgrades reflect constant deterioration in Gildemeister’s credit profile driven by poor operational performance resulting in leverage increase and liquidity deterioration at levels not previously incorporated in the ratings.

The ratings incorporate the view that there is a substantial credit risk and that the company's continued negative free cash flow trend could result in material deterioration of its liquidity during the next quarters, the agency said.

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