Moody’s Raises Fish Exporter’s Outlook

Moody’s has raised the outlook on Copeinca’s B2 credit rating to positive from stable, it says. “The outlook change reflects the company’s progress in improving its operating performance under the individual transferable quota system and expectations for a sustainable free cash generation with the conclusion of its expansion plan,” the agency says. Moody’s highlights Copeinca’s position as the second largest fishmeal producer in Peru, a successful operating history in its current business configuration; and favorable earnings prospects. Modest business diversification compared to protein-industry and regional peers, exposure to potentially volatile volume and price trends and the sensitivity of cash flows to climatic conditions, regulation and seasonality, are among the major restraints. Adjusted debt/Ebitda improved to 1.9x, in the 12 months to Q1 from over 2.4x in previous years, and interest coverage in the same period has also improved to 5.2x from 4.1x.