Fitch puts Ouro Verde on watch

Fitch Ratings said it placed Ouro Verde Locacao e Servico SA's BB- long-term foreign-currency and local-currency issuer default ratings and national scale rating of A(bra) on Rating Watch negative.

The negative watch reflects Ouro Verde's increasing refinancing risks following the unsuccessful international bond issuance during 2016, Fitch said, and its inability to obtain medium-term funding in the local credit market to materially extend its high short-term debt maturities.

This risk profile is not deemed in line with a BB rating category, the agency said.

So, Ouro Verde's rating could be downgraded if the company is unable to effectively improve its debt-maturity profile in the next six months, Fitch said.

© 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.