Fitch affirms Emcali

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

The outlook is stable.

According to the agency, Emcali's ratings reflect the company's weak financial profile characterized by high and growing leverage, low interest and debt service coverage, as well as low cash flow generation margins.

Going forward, Emcali's future cash flow generation is projected to cover debt service by about 10 times, and government support will likely be required to meet financial obligations from time to time, the agency added.

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