S&P revises USJ outlook to stable

S&P said it affirmed the CCC+ global scale corporate credit ratings on USJ Acucar e Alcool SA but revised the outlook to stable from negative.

At the same time, the agency kept the recovery rating of 6 on USJ's unsecured debt unchanged and affirmed the senior unsecured debt rating at CCC-.

S&P said the stable outlook reflects its view that, using a combination of short-term debt refinancing and new issuances, USJ has addressed most of its liquidity challenges for the next 12 to 18 months.

The company also maintained a solid operating performance in fiscal 2017, with the lowest idle capacity level in several harvests and better sugar and ethanol prices, resulting in higher EBITDA levels and slightly positive FOCF generation, the agency added.

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