Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Salfacorp Rebounds After Denying Covenant Breach: Santiago Mover

March 26 (Bloomberg) -- Salfacorp SA, Chile’s largest builder, jumped the most in four months in Santiago trading after denying reports that it breached debt covenants.

The stock climbed 4.2 percent to 1,287 pesos at the close in Santiago, the most since Nov. 28 and ending a five-day losing streak.

The company doesn’t face imminent payments of guarantees on building contracts, according to a written response to regulators published after the close of trading March 23. The shares fell 14 percent in the previous five days.

“We’ve contacted the company and they remain calm,” said Alex Sadzawka, an analyst at Celfin Capital SA in Santiago. “If last week’s fall was due to solvency concerns, then it should have happened at the end of the third quarter, when Salfa showed weaker figures than in the fourth quarter.”

Salfacorp had total current liabilities of 236 billion pesos ($492 million) at the end of 2011, from 250 billion pesos at the end of the third quarter, according to data compiled by Bloomberg. The company’s so-called quick ratio -- which gauges short-term liquidity by dividing current liabilities into cash, cash equivalents and account receivables -- rose to 0.97 from 0.91 in the same period.

Celfin has a buy rating on the stock with a year-end price target of 1,980 pesos, Sadzawka said.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.