Fitch Ratings affirms ‘AAA(col)’ rating to Grupo Nutresa

Yesterday, 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 perspective 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. This is in the midst of a challenging economic environment, characterized by the inertia of a weakened exchange rate, rising inflation, high interest rates and deceleration of private consumption. The rating incorporates the pressure on liquidity indicators.”

In the future, the rating agency:

• Expects Grupo Nutresa’s organic growth in Colombia to maintain a positive trend, supported by its leadership position in the markets in which it operates and the brand capital, which favors the execution of price strategies with a low impact on sales volumes of sales.
• Contemplates, beginning in 2017, a gradual recovery of the EBITDA margin as consumption conditions improve.
• Estimates that for the next three years the Company will continue deleveraging its operation and does not rule out future acquisitions.

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