Moody's may cut Bracol

Moody's Investors Service said it placed the B1 ratings of Bracol Holding Ltda. (formerly Bertin Ltda.), 72% owner of unrated Bertin SA, on review for possible downgrade.

"The rating action was primarily due to Bracol's weaker liquidity profile as a result of its lower cash balances observed at the end of its first quarter ended in March 31, 2009 due to substantial outflows related to: high working capital needs, capital expenditures, dividend payout and debt servicing," explained Moody's vice president senior analyst, Soummo Mukherjee.

"These cash outflows led Bracol to report negative cash flow from operations and free cash flow in Q109 and for the last 12 months ended in March 31st, 2009," added Mukherjee.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.