Fitch acts on various Brazilian corporates

Fitch Ratings said it downgraded the long-term foreign-currency issuer default ratings of several Brazilian corporates following the May 5 downgrade of the sovereign foreign currency rating to BB from BB+ and the country ceiling to BB+ from BBB-.

The outlook on the sovereign is negative as it is on the corporates that have been downgraded.

At the same time, Fitch affirmed the ratings of several issuers at BB+ and higher based on factors that mitigate sovereign transfer and convertibility risk. These factors include hard-currency export revenues, overseas production facilities, foreign parent or strategic partner, unrestricted cash held abroad, or committed credit facilities.

The following actions were taken:

• Ache Laboratorios Farmaceuticos SA: Long-term foreign-currency issuer default rating downgraded to BB+ from BBB-, negative; long-term local-currency issuer default rating affirmed at BBB, stable;

• BR Malls Participacoes SA: Long-term foreign-currency issuer default rating affirmed at BB+; outlook revised to negative; long-term local-currency issuer default rating affirmed at BB+ positive;

• Braskem SA: Long-term foreign-currency issuer default rating affirmed at BBB-, negative; long-term local-currency issuer default rating affirmed at BBB-, stable; notes due 2017 affirmed at BBB-;

• Braskem Finance Ltd.: Unsecured senior notes due 2018, 2020, 2021, 2022 and 2024 affirmed at BBB-; perpetual bonds affirmed at BBB-;

• Braskem America Finance Co.: Notes due 2041 affirmed at BBB-;

• BRF SA: Long-term foreign-currency issuer default rating affirmed at BBB, negative; long-term local-currency issuer default rating affirmed at BBB, stable; notes due 2018, 2022, 2023, 2024 affirmed at BBB;

• BFF International Ltd.: Notes due 2020 guaranteed by BRF SA affirmed at BBB;

• Centrais Eletricas Brasileiras SA: Long-term foreign-currency issuer default rating downgraded to BB- from BB, negative; long-term local-currency issuer default rating downgraded to BB- from BB, negative; $1 billion senior unsecured notes due 2019 downgraded to BB- from BB; $1.75 billion senior unsecured notes due 2021 downgraded to BB- from BB;

• Cielo SA: Long-term foreign-currency issuer default rating downgraded to BB+ from BBB-, negative; long-term local-currency issuer default rating downgraded to BBB- from BBB, negative;

• Cielo USA Inc.: Notes due in 2022 downgraded to BB+ from BBB-;

• Companhia de Gas de Sao Paulo – Comgas: Long-term foreign-currency issuer default rating downgraded to BB+ from BBB-, negative; long-term local-currency issuer default rating affirmed at BBB- stable;

• Cosan Luxembourg SA: Notes due in 2018, 2023 affirmed at BB+;

• Cosan Overseas Ltd.: Perpetual notes affirmed at BB+;

• Cosan SA Industria e Comercio: Long-term foreign-currency issuer default rating affirmed at BB+, outlook revised to negative from stable; long-term local-currency issuer default rating affirmed at BB+, stable;

• Embraer SA: Long-term foreign-currency issuer default rating affirmed at BBB-, stable; long-term local-currency issuer default rating affirmed at BBB-, stable; senior unsecured debt affirmed at BBB-;

• Embraer Overseas Ltd.: Senior unsecured debt affirmed at BBB-;

• Embraer Netherlands Finance BV: Senior unsecured debt affirmed at BBB-;

• Energisa Paraiba – Distribuidora de Energia SA: Long-term foreign-currency issuer default rating affirmed at BB+, outlook revised to negative from stable; long-term local-currency issuer default rating affirmed at BB+, stable;

• Energisa Sergipe – Distribuidora de Energia SA: Long-term foreign-currency issuer default rating affirmed at BB+, outlook revised to negative from stable; long-term local-currency issuer default rating affirmed at BB+, stable;

• Energisa Minas Gerais - Distribuidora de Energia SA: Long-term foreign-currency issuer default rating affirmed at BB+, outlook revised to negative from stable; long-term local-currency issuer default rating affirmed at BB+, stable;

• Fibria Celulose SA: Long-term foreign-currency issuer default rating affirmed at BBB-, stable; long-term local-currency issuer default rating affirmed at BBB-, stable;

• Fibria Overseas Finance Ltd.: Notes due 2024 affirmed at BBB-;

• Furnas Centrais Eletricas SA: Long-term foreign-currency issuer default rating downgraded to BB- from BB, negative; long-term local-currency issuer default rating downgraded to BB- from BB, negative;

• Gerdau SA: Long-term foreign-currency issuer default rating affirmed at BBB-, stable; long-term local-currency issuer default rating affirmed at BBB-, stable; Port Authority of the City of St Paul, Minn., solid waste disposal revs (Gerdau) 2012-7 affirmed at BBB-;

• Gerdau Holdings Inc.: Notes due 2020 and 2024 affirmed at BBB-;

• Gerdau Trade Inc.: Notes due 2021 and 2023 affirmed at BBB-;

• GTL Trade Finance Inc.: Notes due 2017, 2024 and 2044 affirmed at BBB-;

• Hypermarcas SA: Long-term foreign-currency issuer default rating affirmed at BB+, outlook revised to negative from positive; long-term local-currency issuer default rating affirmed at BB+, positive;

• ISA Capital do Brasil SA: long-term local-currency issuer default rating affirmed at BB+, stable; long-term foreign-currency issuer default rating affirmed at BB+; outlook revised to negative from stable; senior secured notes outstanding $31.6 million affirmed at BBB-;

• Itaipu Binacional: Long-term foreign-currency issuer default rating downgraded to BB from BB+, negative; long-term local-currency issuer default rating downgraded to BB from BB+, negative;

• JBS SA: Long-term foreign-currency issuer default rating affirmed at BB+, stable; long-term local-currency issuer default rating affirmed at BB+, stable; notes due 2016 affirmed at BB+;

• JBS USA Lux SA: Long-term foreign-currency issuer default rating affirmed at BB+, stable; long-term local-currency issuer default rating affirmed at BB+, stable; term loan B facility due in 2018 affirmed at BBB-, notes due 2020, 2021 affirmed at BB+;

• JBS USA Finance, Inc.: Notes due 2020, 2021 affirmed at BB+;

• JBS Investments GmbH: Notes due 2020, 2023, 2024 affirmed at BB+;

• Klabin SA: Long-term foreign-currency issuer default rating affirmed at BBB-, negative; long-term local-currency issuer default rating affirmed at BBB-, stable;

• Klabin Finance SA: Notes due 2024 affirmed at BBB-;

• Localiza Rent a Car SA: Long-term foreign-currency issuer default rating downgraded to BB+ from BBB-, negative; long-term local-currency issuer default rating affirmed at BBB, stable;

• Petrobras (Petroleo Brasileiro SA): Long-term foreign-currency issuer default rating downgraded to BB from BB+, negative; long-term local-currency issuer default rating downgraded to BB from BB+, negative;

• Petrobras International Finance Co.: International debt issuances downgraded to BB from BB+;

• Petrobras Global Finance BV: International debt issuances downgraded to BB from BB+;

• Petrobras Argentina SA: International debt issuances downgraded to BB from BB+;

• Raizen Energia SA: Long-term foreign-currency issuer default rating affirmed at BBB, negative; long-term local-currency issuer default rating affirmed at BBB, stable;

• Raizen Combustiveis SA: Long-term foreign-currency issuer default rating affirmed at BBB, negative; long-term local-currency issuer default rating affirmed at BBB, stable;

• Raizen Energy Finance Ltd.: Notes due in 2017 affirmed at BBB;

• Rede D’Or Sao Luiz: Long-term foreign-currency issuer default rating affirmed at BB+, outlook revised to negative from stable; long-term local-currency issuer default rating affirmed at BB+, stable;

• Sadia Overseas Ltd.: Senior unsecured notes due 2017 guaranteed by BRF affirmed at BBB;

• Tractebel Energia SA: Long-term foreign-currency issuer default rating downgraded to BB+ from BBB-, negative; long-term local-currency issuer default rating affirmed at BBB; outlook revised to negative from stable;

• Transmissora Alianca de Energia Eletrica SA: Long-term foreign-currency issuer default rating downgraded to BB+ from BBB-, negative; long-term local-currency issuer default rating affirmed at BBB, outlook revised to negative from stable;

• Vale SA: Long-term foreign-currency issuer default rating affirmed at BBB, negative; long-term local-currency issuer default rating affirmed at BBB+, negative; senior unsecured debt issuance affirmed at BBB;

• Vale Overseas Ltd.: Notes guaranteed by Vale affirmed at BBB;

• Vale Canada Ltd.: Notes guaranteed by Vale affirmed at BBB;

• Votorantim Cimentos SA: Long-term foreign-currency issuer default rating affirmed at BBB-, negative; Notes due 2021, 2022, and 2041 affirmed at BBB-;

• Votorantim SA: Long-term foreign-currency issuer default rating affirmed at BBB-, negative; long-term local-currency issuer default rating affirmed at BBB- negative; and

• Voto-Votorantim Overseas Trading Operations IV Ltd.: Notes due 2020 affirmed at BBB-.

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