Fitch puts GVO on negative watch

Fitch Ratings said it placed Virgolino de Oliveira SA Acucar e Alcool's (GVO) and Virgolino de Oliveira Finance SA's ratings on Rating Watch Negative.

Fitch said the action reflects a more challenging environment to refinance its relevant short-term debt. The still-stressed sugar and ethanol sector and the recent financial problems of another company in this sector (Aralco) may make it difficult for GVO to roll over its debt. The sector remains pressured by still depressed sugar prices, uncertainties regarding the future behavior of ethanol prices, and unusual dry weather conditions in Sao Paulo State in early 2014, which could affect agricultural yields in the 2014/2015 season, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.