Moody's ups Voto-Votorantim

Moody's Investors Service said it upgraded the foreign currency debt ratings of $300 million in senior unsecured long-term notes issued by Voto-Votorantim Overseas Trading Op. III Ltd. to Ba3 from B1.

The rating action is concurrent with Moody's upgrade of Brazil's long-term foreign currency ceiling to B1 from B2.

Moody's said the Ba3 rating reflects the creditworthiness of the Votorantim group and the operating company guarantors and additionally incorporates convertibility risk of the Brazilian real. As such, the rating is a function of the group's underlying credit strength, the probability of a sovereign default implied by the Brazilian government's B1 foreign currency bond rating and the likelihood that, given a sovereign default, the government would impose a debt moratorium generally to companies domiciled in Brazil and specifically to debt issued by the Votorantim Group.

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