RIO DE JANEIRO, BRAZIL – Latin American corporate credit indicators point to an improving economic and operating environment for most countries across the region in 2021, according to a series of new reports from Fitch Ratings.
“A slow economic recovery is expected in Brazil, Chile, Colombia, Mexico and Peru next year following the shock of the pandemic,” said Jay Djemal, Senior Director. “Chilean corporates are also facing two years of uncertainty in light of the new constitution set for 2022, while corporate issuers in Argentina continue to navigate tight capital controls”.
Corporates in Argentina already have limited access to U.S. dollar revenues and reserves. Several capital controls forced them to burn U.S. dollar resources held abroad, reducing liquidity cushions and weakening financial flexibility.