Fitch Affirms Grupo Nutresa’s Ordinary Bond Rating in ‘AAA(col)’

Fitch Ratings affirmed the rating of the Grupo National de Chocolates Trust (Grupo Nutresa) Ordinary Bonds for COP 500.000 billion in ‘AAA(col).’ The rating outlook is stable.

According to Fitch Ratings, the decision to affirm the rating “reflects the Company’s strong competitive position in its relevant markets, its growing geographic diversification in countries with a favorable operating environment and its strong credit profile, characterized by a moderate level of leverage and a robust generation of operating cash flow across the business cycle. The Company’s competitive position and its brand capital have allowed it to defend its margins of profitability. The rating also incorporates the strengthening of liquidity indicators”.

Liquidity indicators showed a remarkable improvement, favored by an increase in the operating cash flow. As of December 31st 2017, Grupo Nutresa’s cash levels and operating cash flow covered more than 2X its short-term debt. This way, Fitch Ratings do not anticipate pressures over its liquidity metrics. The company has a broad access to the financial market and local capitals, which offers additional financial flexibility to face eventual financing needs.

‘AAA(col)’ National Long-Term Ratings denote the highest ratings assigned by Fitch on its national rating scale. This rating is assigned to issuers or obligations with the lowest expectation of default risk relative to all other issuers or obligations in the same country. On the other hand, the outlook refers to the direction in which a rating could possibly fluctuate within a 1-2 year period. Most of rating outlooks are generally stable.