Dear reader, Standard & Poor’s Ratings Services is pleased to present “TOP 20 Peruvian Companies” a report focusing on a selected group of Peruvian entities which we consider to be among those with the best credit quality in the country. Within the next pages, there is a detailed section on the methodology applied to determine theselected list of companies. Over the last five years, Peru’s creditworthiness has steadily improved with rising terms of trade and stable macroeconomic policies and higher levels of investment that supported growth. Low fiscal deficits or surpluses, proactive debt management, an autonomous central bank with an inflation-targeting regime, a floating exchange rate, strengthening bank supervision, andnumerous free trade agreements are some of the key macroeconomic factors that underpinned the country’s economic performance over the last decade. Peru’s economic performance has shaped the country’s corporate sector during the last decade. As the country’s economy, the fate of many of the major corporations is tied to the swings of the global economy, especially the evolution of commodities ingeneral and metals and minerals in particular. However, prudent financial policies and cash management have allowed most players to grow and withstand external shocks improving their creditworthiness through the cycle. These characteristics will emerge from the individual analyses included in this publication. We have also included commentaries on the sovereign rating of Peru, the financial system,as well as information on Latin America and criteria and methodology to provide a broader analytical framework. We trust that the investor community, both in Peru and overseas, will find this report an important reference tool that will facilitate investment decisions. Pablo F. Lutereau Senior Director Analytical Manager, Corporate Ratings Standard & Poor’s
Top 20: PeruvianCompanies
The analyses in this publication are Standard & Poor’s opinions based on limited publicly available information, do not constitute Standard & Poor’s ratings or definitive indications of what ratings Standard & Poor’s would assign, and are not recommendations to purchase, hold or sell any securities or make any investment decision. Standard & Poor’s will not update, modify or surveilthese analyses.
Table of Contents
Introduction Selection Criteria and Methodology Commentaries
• • • • • • Republic of Peru Latin America’s Resilience, Recovery, And Consolidation How Vulnerable Are Latin American Corporates To Commodity Prices? A Sensitivity Analysis Latin America Is Seeing a Rise in Privately Financed Infrastructure Projects South American Banks’ Should Support RapidCredit Growth Will Future Flow Securitizations Help Fund Peru’s Growing Mining Export Industry? 8 18 25 32 35 40
Selected Financial Data and Credit Statistics
Peer comparison 46
• • • • • • • • • • • • • • • • • • • • Alicorp S.A.A. Compañía de Minas Buenaventura S.A.A. Corporación Lindley S.A. Edegel S.A.A. Empresa de Distribución Eléctrica de Lima Norte S.A.A. - EDELNOR EnerSurS.A. Gloria S.A. Luz del Sur S.A.A. Minera Barrick Misquichilca S.A. Minera Yanacocha S.R.L. Minsur S.A. Petróleos del Perú – Petroperú S.A. Saga Falabella S.A. Shoughang Hierro Perú S.A.A. Sociedad Minera Cerro Verde S.A.A. Supermercados Peruanos S.A. Telefónica del Perú S.A.A. Telefónica Móviles S.A. Unión de Cervecerías Peruanas Backus y Johnston S.A.A. Volcán Compañía Minera S.A.A. 50 52 5456 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88
Understanding Ratings and Definitions
Guide To Credit Rating Essentials Glossary Of Financial Ratio Definitions Incorporating Adjustments Into The Analytical Process Standard & Poor’s Rating Definitions 92 95 96 98
Top 20: Peruvian Companies
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