Fitch puts Brazil construction companies on watch

Fitch Ratings said it placed the ratings of all Brazilian heavy construction companies on Rating Watch negative.

This action reflects concerns about the financial and business impact upon these corporations after corruption allegations recently surfaced about contracts between Petrobras and multiple companies in the sector, Fitch said.

Camargo Correa SA’s foreign-currency issuer default rating of BB was placed on negative watch, along with its local-currency issuer default rating of BB, national long-term rating of AA-(bra), national short-term rating of F1(bra) and R$1 billion debentures second issuance due 2014 rating of AA-(bra).

CCSA Finance Ltd.’s foreign-currency issuer default rating of BB was placed on negative watch, along with its local-currency issuer default rating of BB and the BB rating on its $250 million senior unsecured bonds due 2016.

Construtora Andrade Gutierrez SA’s foreign-currency issuer default rating BBB- was placed on negative watch, along with its local-currency issuer default BBB- and national scale rating of AA(bra).

The BBB- rating on Andrade Gutierrez International SA’s $500 million senior unsecured bonds due 2018 also was placed on negative watch.

Construtora Norberto Odebrecht SA’s foreign-currency issuer default rating of BBB was placed on negative watch, along with its local-currency issuer default rating of BBB and national scale rating of AAA(bra).

Odebrecht Finance Ltd.’s foreign-currency issuer default rating of BBB also was placed on negative watch, along with the BBB rating on its R$500 million senior unsecured notes due 2018, $500 million senior unsecured notes due 2020, $600 million senior unsecured notes due 2022, $800 million senior unsecured notes due 2023, $550 million senior unsecured notes due 2025, $500 million senior unsecured notes due 2029, $850 million senior unsecured notes due 2042 and $750 million perpetual bonds.

OAS SA’s foreign-currency issuer default rating of B+ was placed on negative watch, along with its local-currency issuer default rating of B+, national scale rating of BBB+(bra) and BBB+(bra) ratings on its R$300 million debentures third issuance due 2016, R$250 million debentures fourth issuance due 2027 and R$300 million debentures fifth issuance due 2015.

Construtora OAS SA’s foreign-currency issuer default rating of B+ was placed on negative watch, along with its local-currency issuer default rating of B+ and national scale rating of BBB+(bra).

OAS Investments GmbH’s foreign-currency issuer default rating of B+ also was placed on negative watch, along with the B+ rating and RR4 recovery rating on its $850 million senior unsecured notes due 2019.

The B+ rating on OAS Finance Ltd.’s $500 million perpetual bonds with recovery rating of RR4 was placed on negative watch, along with the B+ rating on with recovery rating of RR4 on its $400 million senior unsecured notes due 2021.

Construtora Queiroz Galvao SA’s national scale rating of AA-(bra) also was placed on negative watch, along with Galvao Engenharia SA’s national scale rating of BBB+(bra).

Galvao Participacoes SA’s foreign-currency issuer default rating of B+ was placed on negative watch, along with its local-currency issuer default rating of B+, national scale rating of BBB+(bra) and the BBB+(bra) rating on its R$300 million senior unsecured notes due 2020.

Fitch also said it downgraded the foreign- and local-currency issuer default ratings of Mendes Junior Trading e Engenharia SA to B- from B and national scale rating to BB(bra) from BBB(bra). Those ratings remain on Rating Watch negative.

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