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Fitch Ratings: mining companies in Peru are solid despite protests and blockades

Fitch Ratings: mining companies in Peru are solid despite protests and blockades

Fitch Ratings reported that the mining and metal companies that operate in Peru, despite the social unrest and blockades in some sections, have solid liquidity and are able to make deliveries, reducing credit risk.

Through a multi-sector analysis, they determined that while a handful of companies are more exposed, the impact on cash flows is limited.

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The rating agency does not have a date in mind for “the waters to calm down”, but it assures that the protests have diminished in relation to “the maximum levels” of January, so it is expected that “the ore from interrupted operations will reach the ports in mid-March”.

However, they warn that, if the obstructions in the mining tracts continue for more than three months, there could be a material risk to the operations of a mine, including its logistics.

What mines are at risk?

According to Fitch, Buenaventura (BB-/Stable) and Volcan (BB/Stable) have a high risk of interruption.

On the other hand, Minsur (BBB-/Positive) and Nexa Resources (BBB-/Stable) have a medium risk.

Source: Larepublica

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