Fitch trims Americanas

Fitch Ratings said it lowered Americanas SA’s long-term local-currency issuer default rating to BB from BB+ and its long-term national scale rating to AA+(bra) from AAA(bra). Additionally, the agency downgraded Americanas' unsecured debentures to AA+(bra) from AAA(bra'.

Fitch, however, affirmed Americanas BB long-term foreign-currency issuer default rating and senior unsecured global notes issued by its wholly owned subsidiaries JSM Global Sarl and B2W Digital Lux Sarl.

“The downgrade of the LC IDR and national scale rating reflects the company's high total and net leverage metrics expected to 2022 and 2023, inconsistent with the previous ratings. Slow improvements in EBITDA generation, high-interest expenses and relevant working capital needs should result in relevant cash burn in 2022, which should be financed by additional debt. The company's strategy to delay high total debt level reduction is also seen as a negative credit consideration,” Fitch said in a press release.

The outlook remains negative.

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