S&P downgrades USJ Acucar

Standard & Poor's said it lowered its global scale corporate credit and issue-level ratings on USJ – Acucar e Alcool SA to CC from CCC- and the Brazil national scale corporate credit rating to brCC from brCCC-.

The recovery rating of 4, with average recovery prospects of 30%-50%, in the low range of the band, remains unchanged.

The agency also placed all ratings on CreditWatch with negative implications.

S&P said the downgrade reflects its view that the recommended exchange proposal is a distressed offer because it believes the company wouldn't be able to meet its interest payments and other obligations in the absence of this proposal and a more-balanced capital structure.

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