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S&P lowers USJ Acucar
Standard & Poor's said it lowered the global scale corporate credit and issue-level ratings on USJ – Acucar e Alcool SA to CCC- from B-.
The agency also said it lowered the Brazil national scale corporate credit rating on the company to brCCC- from brB-.
The outlook remains negative.
The recovery rating of 4, indicating 30% to 50% expected default recovery, is unchanged.
The downgrades reflect the increasing liquidity pressures on the company given its low cash position and inventories to meet its short-term debt obligations, S&P said.
The company's capital structure has become unsustainable amid unfavorable conditions for debt refinancing, the agency said.
These factors may result in the company's default on its debt obligation in the short term, increasing its dependency on favorable external factors to continue covering its liabilities, S&P said.
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