AA2000 Is Most Vulnerable LatAm Corp Issuer: Lucror Analytics

March 18, 2020 at 2:45:22 PM EDT

(Bloomberg) -- Aeropuertos Argentina 2000’s “weak liquidity position is not enough to cover short-term debt maturities,” Lucror Analytics says in special report on LatAm corporates.

The Buenos Aires-based airport operator is one of the “most vulnerable” LatAm issuers, Lucror says

“While the bonds have dropped significantly, we see additional downside risk if COVID-19 leads to the closure of international borders beyond March 31st, which would make AA2000’s liquidity position precarious.”

Bonds due in 2027 have “reasonable chance” of restructuring

Brazilian steelmakers CSN and Usiminas “enjoy adequate liquidity, even though the industry may face headwinds”

Brazil’s protein sector: positive outlook

“We believe the sector will recover from the COVID-19 impact in Q1 and Q2 and outperform in the LatAm HY space, continuing to benefit from the outbreak of African swine flu (ASF) in China in the medium to long term, while enjoying strong liquidity. Our top pick in the protein sector, in the current environment, is JBS.”

Source: BFW (Bloomberg First Word)