S&P: CFR still on watch

Standard & Poor's said its BB long-term corporate credit rating on CFR SA remains on CreditWatch with negative implications, where it was placed on March 16.

The agency said that the CreditWatch placement reflected the protracted delay to publication of CFR's 2004 financial statements under IFRS.

Although the delayed IFRS financial statements for 2004 are now available, the agency said it has yet to receive some critical financial information required to resolve the CreditWatch status and assess our basis for maintaining the rating at its current level.

The agency added that the rating reflects both CFR's extremely weak financial profile and its strong reliance on budget allocations to cover recurrent negative free cash flows, stemming from heavy operating losses and significant investment needs.

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