Nothing has gone right for Clisa recently. The depreciation of the ARS and the increase in interest rates has highlighted the Argentine construction and waste disposal company’s higher vulnerability relative to other Argentinian corporates, as its revenues are almost entirely in ARS, and some are not even inflation-adjusted. President Mauricio Macri announced a pullback in public infrastructure, which could affect the backlog of its construction business going forward. Also, 17 May the economic offers for the highway PPP were unveiled, and Clisa did not present the best offer for any of the projects (far from the best offer in all cases), so we can forget about that catalyst.
Overall, Clisa’s 2023 bond widened more than 560bps since 7 May and now trades at 82.
CLICK HERE to access Clisa’s 4Q17 Credit Report