Position as the second-largest Venezuelan steelmaker; Profitability despite weak economic conditions; and Comfortable maturity profile. Expropriation in progress; High political and business risk in Venezuela; High correlation with the Venezuelan construction industry; Operation amid currency exchange controls in Venezuela; and Highly cyclical end markets. Standard & Poor's Ratings Services' ratings on Siderúrgica del Turbio S.A. (Sidetur) reflect the challenges the company faces because of Venezuela's political, regulatory, and business environment, with an expropriation now in progress, a high correlation with the Venezuelan construction industry, cyclical end markets, and currency exchange controls in Venezuela. These factors more than offset the benefits from currently favorable steel market conditions, Sidetur's position as the second-largest Venezuelan steel maker, and its comfortable debt maturity profile....
Companies mentioned in this report are:
- Siderurgica del Turbio S.A.
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Research Type: Full Analysis