S&P rates Odebrecht notes BBB

Standard & Poor’s said it assigned a global scale BBB rating to Odebrecht Finance Ltd.’s proposed senior unsecured notes due 2029 of up to $500 million.

Odebrecht Finance is a financing vehicle for Construtora Norberto Odebrecht SA, which unconditionally and irrevocably guarantees the notes.

The proceeds will be used to fund a tender offer for 2020, 2022, 2023 and 2025 notes.

S&P said it continues to view Construtora Norberto Odebrecht as a low leverage and margin-resilient company that prioritizes profitability over top-line revenues growth.

The company has a strong reputation and brand recognition due to its status as the largest engineering and construction company in Latin America, the agency said.

But its exposure to countries with high political instability and weak macroeconomic trends pose risks to its creditworthiness, S&P said.

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