Moody's: Automotores negative

Moody's Investors Service said it affirmed Automotores Gildemeister SA's Ba1 corporate family rating and the Ba1 rating on its $400 million senior unsecured notes due 2021.

The outlook was revised to negative from stable.

Moody's said the change in outlook reflects the company's weakening credit profile with falling revenues in Chile and pressures on margins.

The outlook change also reflects Moody's expectation that the operating environment will likely become more challenging during the remainder of the year, particularly in Chile, Gildemeister largest market, given the current context of a more uncertain global economic and financial environment and high capex which will result in negative free cash flows and higher leverage.

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