...Fitch Ratings expects the Latin American sugar and ethanol (S&E) sector to end the current season on March 31, 2020 with stable leverage and higher cash flow generation compared with 2019. This is the result of higher crushed volumes and ethanol prices benefitting EBITDA generation and offsetting the effects of a weaker Brazilian real on debt levels. For the next season Fitch sees limited room for improved cash flow generation, as sugar prices are expected to increase modestly. A potential upside in ethanol could be derived from the implementation of the carbon-credit program, RenovaBio, and the sale of green carbon saving credits (CBios). We expect modest expansionary capex and tight liquidity for most S&E issuers....
