Fitch lowers several Brazil companies

Fitch Ratings said it downgraded the foreign-currency issuer default ratings of several Brazilian corporations following the downgrade of the sovereign’s ratings.

Fitch downgraded the Brazilian sovereign’s foreign- and local-currency issuer default ratings to BB+ from BBB- and country ceiling to BBB- from BBB.

The outlook on the sovereign is negative.

The downgrades reflect the economy’s deeper recession than previously anticipated, continued adverse fiscal developments and the increased political uncertainty that could further undermine the government’s capacity to effectively implement fiscal measures to stabilize the growing debt burden, the agency said.

Fitch downgraded Ache Laboratorios Farmaceuticos SA’s foreign-currency issuer default rating to BBB- from BBB, along with Cielo SA’s foreign-currency issuer default rating to BBB- from BBB and Cielo USA Inc.’s notes due in 2022 to BBB- from BBB.

The agency also downgraded Globo Comunicacao e Participacoes SA’s foreign-currency issuer default rating to BBB- from BBB and senior unsecured notes due 2022 and 2025 to BBB- from BBB.

Fitch also downgraded Itaipu Binacional’s foreign-currency issuer default rating to BB+ from BBB- and local-currency issuer default rating to BB+ from BBB-.

Localiza Rent a Car SA’s foreign-currency issuer default rating was downgraded to BBB- from BBB, along with Tractebel Energia SA’s foreign-currency issuer default rating to BBB- from BBB.

Transmissora Alianca de Energia Eletrica SA’s foreign-currency issuer default rating also was downgraded to BBB- from BBB, along with Vale SA’s foreign-currency issuer default rating to BBB from BBB+ and senior unsecured debt issuance to BBB from BBB+.

Vale Overseas Ltd.’s notes guaranteed by Vale also were downgraded to BBB from BBB+ and Vale Canada Ltd.’s notes guaranteed by Vale were downgraded to BBB from BBB+.

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