S&P rates Construtora Norberto notes BB

Standard & Poor's said it assigned a BB rating to the proposed $200 million in senior unsecured perpetual notes to be issued by Odebrecht Finance Ltd. The notes are unconditionally and irrevocably guaranteed by Construtora Norberto Odebrecht SA, which is the parent company of Odebrecht SA.

The proceeds will be used to improve its debt profile by reducing debt cost in replacing $200 million in senior unsecured perpetual notes with similar characteristics issued by Odebrecht Overseas Ltd.

The notes will rank equally with the company's other senior unsecured indebtedness and pari passu with Odebrecht Finance's existing $1.1 billion senior unsecured notes.

The ratings reflect the company's exposure to the competitive, volatile and cyclical construction industry and more aggressive financial policy as it supports the group's investments in new businesses, the agency said.

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