Fitch: Colombian food 2015 outlook, leverage with limited headroom

Fitch Ratings expects the ratings of most Colombian food companies to remain stable during 2015, despite a slowdown of economic activity, according to a new report published today.

Pressures from rising inflation, the depreciation of the Colombian peso, and a slowdown in consumer activity should be offset by strong brand positioning, as well as operational and product diversification. Lower commodity prices will also give some cushion to most companies in the sector.

Several Colombian food companies have limited leverage headroom, as a result of debt-funded merger and acquisition activity. Downgrades are more likely to be linked to significant debt-financed acquisitions than to weakening economic activity.