Fitch downgrades Libra Terminal

Fitch Ratings said it downgraded Libra Terminal Rio SA's long-term foreign and local currency issuer default ratings to D from CCC and national long-term rating to D(bra) from CCC(bra).

The agency also downgraded the rating assigned to the first issuance of R$270 million debentures due 2020 to D(bra) from CCC(bra).

Fitch said the downgrade follows the announcement of the filing for Chapter 11 bankruptcy of Libra Rio, of its controlling holding company, Libra Holding SA, and of part of its affiliates, which is one of the automatic early amortization clauses of the first issuance of debentures of Libra Rio.

“Libra Rio's ratings are driven by the consolidated profile of Libra Holding SA (Libra Holding) given the cross-default clauses between the operating subsidiaries and Libra Rio, as well as the guarantees provided by Libra Holding,” the agency said in a news release.

“This supports a view that strong operational and financial linkages exist between the different operating companies of the group.”

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