Fitch affirms Emcali

Fitch Ratings said it affirmed the CCC foreign- and local-currency issuer default ratings of Empresas Municipales de Cali SA.

The outlook is stable.

The agency said Emcali's ratings reflect the company's expected low cash flow generation relative to its fixed financial obligations. Going forward, Emcali's future cash flow generation is projected to barely cover debt services.

The Colombian government is temporarily covering a portion of Emcali's debt. Fitch said that absent government support, the company would have little room, if any, to cover its fixed financial obligations and any contingencies that may arise in the future, and the company is restricted from issuing additional debt.

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