Fitch lowers Odebrecht to BB/AA-(bra)

Fitch Ratings said it downgraded the foreign and local currency long-term issuer default ratings for Odebrecht Engenharia e Construcao SA to BB from BBB-, and its long-term national scale rating to AA-(bra) from AA+(bra).

These actions affect about $3 billion of issued debt by Odebrecht Financial Ltd., which Odebrecht Engenharia unconditionally and irrevocably guarantees.

The outlook remains negative.

Fitch said the downgrade reflects its perception of Odebrecht Engenharia’s continued business profile deterioration, influenced by the challenging macroeconomic environment in Brazil, maintenance of low oil prices and potential consequences of the Lava-Jato investigation. These events are likely to pressure the company's backlog, revenues and cash flow generation during the next years.

© 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.