Fitch downgrades Buenaventura

Fitch Ratings said it downgraded Compania de Minas Buenaventura SAA's $550 million of senior unsecured notes due 2026 to BB- from BB. The agency also lowered the company’s local-currency and foreign-currency issuer default ratings to BB- from BB.

“The downgrade reflects weaker-than-expected production of its operating assets, higher than anticipated costs following revised mine plans and elevated leverage metrics as the company increases indebtedness to fund capex.

“Buenaventura's ratings are supported by the dividends the company receives from its stake in Cerro Verde, a prolific copper mine in Peru, with which Fitch estimates will comfortably cover its debt services through the rating horizon by more than 1x on average,” the agency said in a statement.

The outlook is stable.

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