Moody’s lowers Alicorp notes

Moody’s Investors Service said it downgraded Alicorp, SAA’s $450 million 3 7/8% senior unsecured notes due 2023 to Baa3 from Baa2.

The outlook is stable.

The downgrade was prompted by Alicorp’s persistent high financial leverage for the rating, Moody’s said.

The downgrade also reflects the company’s tight approach to short-term debt management with cash on hand covering only 8.9% of the next 12-month maturities as of March 31, the agency said.

Although Alicorp has shown good market access in the last few years, Moody’s said it considers that the low liquidity cushion increases the company’s exposure to refinancing risk. The ratings continue to be supported by the company’s leading market position in Peru in its key product categories, the agency said.

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