S&P puts Cirsa on watch

S&P said it placed its ratings for Cirsa Enterprises SLU on CreditWatch with negative implications. The agency also affirmed the D rating on the company’s payment-in-kind notes.

“The CreditWatch negative placement reflects the uncertain business environment that Cirsa faces as lockdown restrictions remain in place in some Latin American countries, and that it has not yet established a full track record of recovery. During May and June 2020, Cirsa restarted its operations in Italy and Spain, which in 2019 represented about half of the group's EBITDA. We understand that its performance was strong, with revenues bouncing back to close to 2019 revenues over the same period,” S&P said in a press release.

S&P said it now forecasts Cirsa will post nearly a 50% drop in revenues for 2020 compared to its previous estimate of a 30% decline.

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