Moody's downgrades Independencia

Moody's Investors Service said it lowered Independencia SA's corporate family rating to C from Caa3 and the foreign-currency debt rating on its $165 million 12% senior secured guaranteed bonds due 2015 to Ca from Caa1.

The outlook is stable.

The agency said the downgrade reflects the company's very weak liquidity situation arising in part from the inability to successfully resume cattle slaughtering operations following its emergence from bankruptcy in March.

The action also considers the agreement that Independencia reached at a court hearing on Sept. 13 to postpone its September and October monthly payments to Nov. 8 to pre-petition cattle suppliers and others that were owed under its judicial recovery plan due to its low cash balance, Moody's said.

In the agency's view, the ability of the company to meet its upcoming interest payments on the 12% bonds is uncertain given its precarious liquidity situation.

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