Moody's downgrades Viver

Moody's America Latina said it downgraded Viver Incorporadora e Construtora SA's corporate family rating and R$300 million senior secured debentures due 2016 to B3 from B2 on the global scale and to B1.br from Ba2.br on the Brazilian national scale. The outlook remains negative.

The agency said the downgrade reflects the company's weaker-than-expected performance and constrained financial flexibility. Despite Viver's announced turnaround plan including divestitures of non-core assets and capitalization from the shareholders, weak operating performance has postponed improvement in the company's credit profile and has resulted in a weak liquidity profile and in a highly leveraged capital structure that may not be sustainable over the longer term, Moody's said.

The negative outlook reflects the company's challenges to improve operating performance and deleverage its balance sheet over the next 12 to 18 months, the agency said.

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