S&P trims Coruripe

S&P said it lowered its issuer and debt ratings for S.A. Usina Coruripe Acucar e Alcool to B- from B. The recovery rating on its bonds remains 3.

“Coruripe's liquidity had been tight despite the issuance of a $300 million bond in February 2022, given that the company used the proceeds to pay down its syndicated loan. Aside from low cash position and short-term debt of more than R$1 billion, the company faces seasonal working capital requirements and the need to raise new funds amid the cash burn expected in fiscal 2023.

“Greater refinancing risks, given the currently tight financing conditions, will crimp the company's ability to improve its liquidity in the next 12 months through longer-term issuances, despite some newly secured debt (R$220 million CRA with firm commitment and other minor loans from banks and tradings),” the agency said in a press release.

The outlook is negative.

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