Moody’s revises Odebrecht to negative

Moody's Investors Service said it affirmed the Baa3 issuer rating assigned to Construtora Norberto Odebrecht SA and the Baa3 ratings of its guaranteed notes issued by Odebrecht Finance Ltd.

The outlook was revised to negative.

Moody’s said the outlook change reflects the deterioration in the industry fundamentals for engineering and construction in Brazil on the back of corruption scandals at Petroleo Brasileiro SA (Baa2 rating under review for downgrade) and increased macroeconomic uncertainties, which could lead to weaker growth rates, higher execution risks and unexpected cash flow pressures for Construtora Norberto in the near-term.

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