Fitch lowers GalPar, GESA

Fitch Ratings said it downgraded the foreign- and local-currency issuer default ratings for Galvao Participacoes SA (GalPar) to D from CCC and national long-term rating to D(bra) from CCC(bra).

The agency also said it downgraded the national long-term rating for GalPar’s fully owned subsidiary, Galvao Engenharia SA (GESA), to D(bra) from CCC(bra).

The downgrades reflect GalPar’s and GESA’s filing for bankruptcy protection after unsuccessful refinancing negotiations with financial creditors, Fitch said.

The group had been facing relevant difficulties in obtaining funding to operate, pay suppliers and lengthen its debt-maturity profile, the agency said.

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