Moody’s changes Brazilian corporates to stable

Moody's Investors Service said it revised the outlook for the following companies operating in Brazil to stable from negative and affirmed all ratings: Ambev SA; BRF SA; Cielo SA; Embraer SA; Fibria Overseas Finance Ltd.; Suzano Trading Ltd.; Globo Comunicacao e Participacoes SA; and Ultrapar Participacoes SA.

Moody’s said the affirmations and outlook changes follow the March 15 change in Brazil's outlook to stable from negative and the affirmation of its issuer rating, senior unsecured and shelf ratings at Ba2, driven by the following factors:

• Moody's expectation that the downside risks reflected in the negative outlook are abating and macroeconomic conditions stabilizing, with the economy showing signs of recovery, inflation falling and the fiscal outlook clearer;

• Indications that the functioning of Brazil's policy framework is improving and the strength of its institutions recovering, supporting planned implementation of structural fiscal reforms; and

• Risk of contingent liabilities from government-related entities, captured in the negative outlook, has been significantly reduced.

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