Moody’s drops Odebrecht Finance, Odebrecht Engenharia

Moody's Investors Service said it downgraded the foreign currency ratings assigned to the senior unsecured notes issued by Odebrecht Finance Ltd. and guaranteed by Odebrecht Engenharia e Construcao SA to Caa2 from Caa1.

At the same time, the agency downgraded Odebrecht Engenharia’s corporate family rating to Caa2 from Caa1 on the global scale and Caa2.br from B3.br on the Brazilian national scale.

The outlook was changed to negative from positive.

Moody’s said the downgrade to Caa2 and the outlook change reflect the company's backlog erosion, higher than expected cash burn in a moment of slow construction activity leading to weak cash conversion.

As well, the downgrade incorporates significant project cancelations especially in important markets to the company outside of Brazil with no significant signs of recovery in the near-term, the agency added.

© 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.