S&P downgrades Lupatech

Standard & Poor’s said it lowered the global scale corporate credit rating on Lupatech SA to D from CCC, along with its Brazil national scale rating to D from brCCC.

The downgrade follows Lupatech’s filing for judicial reorganization May 25, S&P said.

The company will operate under judicial oversight, the agency said. After the company completed the restructuring program in September 2014, it converted its defaulted bonds to equity and was expecting to sell some non-core assets and gather new investors to unblock interrupted backlog and turn around its operations, S&P said.

Negative trends for oil and gas companies in Brazil and lower oil prices, however, have prevented the company from executing its initial plan, the agency said.

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