S&P stabilizes Concepcion view

S&P said it revised its outlook on Frigorifico Concepcion SA to stable from positive and affirmed its B ratings.

“Larger sales volumes are increasing working capital needs. We estimate them to be about $150 million in 2022 and $45 million in 2023, denting the company's liquidity and slowing its deleveraging. We expect leverage to drop to 3.5x in 2023 from 3.8x in 2022, which is higher than our previous expectation of 2.5x this year. This leaves Concepcion with a tighter cushion to withstand the industry downturns,” the agency said in a press release.

The outlook also reflects the position that Concepcion will post EBITDA margins of about 9%, S&P said.

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