Fitch downgrades Unigel

Fitch Ratings said it downgraded Unigel Participacoes SA's long-term foreign and local currency issuer default ratings to C from CCC and long-term national scale rating to C(bra) from CCC(bra).

Fitch also downgraded the rating on Unigel Luxembourg SA’s senior unsecured bond due 2026 to C/RR4 from CCC/RR4.

The agency said the downgrades follow Unigel's failure to pay a coupon on its $420 million bond due 2026, which was due on Oct. 2.

Fitch said the C rating is in line with its rating definition for an issuer that has entered into a grace period following non-payment of a material financial obligation.

Fitch said it believes that is highly unlikely that Unigel will receive support from its shareholders or sell its assets in a time frame that would support its liquidity.

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