Fitch lowers Libra Terminal

Fitch Ratings said it downgraded Libra Terminal Rio SA's long-term foreign- and local-currency issuer default ratings to RD (restricted default) from C and national long-term rating to RD(bra) from C(bra) following investor approval of its restructuring plan.

Fitch also said it downgraded the rating assigned to the 1a Emissao de debentures totaling R$270 million due 2019 to D(bra) from C(bra).

The downgrades were driven by the acceptance of the debt restructuring plan, which ultimately extended amortizations due in 2017 and the overall maturity of the debentures to 2020, aiming to avoid a traditional payment default, the agency explained.

The debt restructuring is considered a distressed debt exchange, Fitch said.

Once sufficient information is available, the RD rating will be re-rated to reflect an appropriate issuer default rating for the issuer's post-restructuring capital structure, risk profile and prospects, the agency said.

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