...Higher Leverage Drives Outlook: Leverage is higher than originally forecast due to higher than expected capex and a weak consumer environment in Peru, which has led to stagnant demand for soft drinks. Corporacion Lindley S.A.'s (Lindley) net leverage ratio was 5.1x at LTM Sept. 30, 2014. This compares negatively with Fitch Rating's original expectation that leverage would peak at 3.5x. Lindley has spent USD362 million on infrastructures for two new plants from 2012 to 2014. Fitch's original expectation was that Lindley would spend about USD340 million over five years for three new plants. Economic Conditions Dragging Results: Lindley's 2014 performance was weak due to soft demand. Its main product category of carbonated soft drinks (CSD) has seen little to no growth. The operating cash flow benefits of Lindley's first megaplant, Trujillo, which began operations in 2012, have yet to materialize. Pucusana, the second megaplant, is slated to begin operating during first-half 2015. EBITDA at...
