Fitch gives Cosan notes BB+

Fitch Ratings said it rated Cosan Luxembourg SA's 500 million reais 9.5% senior unsecured notes issue due 2018 at BB+.

The notes will be unconditionally and irrevocably guaranteed by Cosan SA Industria e Comercio and will rank equally with all Cosan's unsecured indebtedness, Fitch said.

Net proceeds will be used to prepay a portion of Cosan's 3.3 billion reais of debentures issued to finance the acquisition of Comgas.

According to the agency, Cosan's ratings reflect the increasing contribution of a more diversified asset portfolio and more predictable cash flow businesses on a consolidated basis, which partially soften the impacts of the volatility of the sugar and ethanol industry.

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