...Chilean Corporates Facing a Projected Slowdown Fitch Ratings believes that most Chilean corporates will be able to adjust to slower growth than previously projected. As a result, limited rating activity is expected during 2014 except for those that result from debt-funded acquisitions. Companies in sectors such as construction, retail, consumer products and leisure will be the most vulnerable to cash flow pressure from the projected slowdown in GDP growth to 3.5% from 4.1%. Cost Pressures Lingering Through 2014 Chilean corporates continue to face cost pressure due to rising labor costs and energy prices that are amongst the highest in the region. Elevated energy prices are not expected to abate in 2014. Wage growth has reached a peak, but is unlikely to go back to prior rates in the short term due to the rigidness of the labor market. The industries that have been hurt the most by high energy costs include cement, glass, steel and mining. In light of rising costs Chilean corporates are...
