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Article: Fitch Downgrades Corporacion Durango S.A. de C.V.'s IDRs to 'CC'; Still on Negative Watch.
- Article from:
- Business Wire
- Article date:
- August 5, 2008
CopyrightCOPYRIGHT 2008 Business Wire. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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CHICAGO & MONTERREY, Mexico -- Fitch Ratings has downgraded the following credit ratings of Corporacion Durango S.A. de C.V. (Durango):
-- Foreign Currency Issuer Default Rating (IDR) to 'CC' from 'B-';
-- Local Currency IDR to 'CC' from 'B-';
-- Notes due in 2017 to 'CC/RR4' from 'B/RR3'.
All of the above ratings remain on Rating Watch Negative.
The downgrades reflect the continued deterioration of Durango's business and financial profile. The cash flow stress the company is undergoing is due to continued high prices for old corrugated containers (OCC) and rising energy costs. The prices for these two key components of the ...