Moody’s lowers Odebrecht

Moody's Investors Service said it downgraded the foreign-currency senior unsecured notes issued by Odebrecht Finance Ltd. to B2 from Ba2.

The notes are guaranteed by Odebrecht Engenharia e Construcao SA.

Moody's also said it downgraded Odebrecht Engenharia’s corporate family rating to B2 from Ba2.

The ratings also remain on review for downgrade.

The downgrade were prompted by increased credit risk and rising financial constraints for the company as a result of the evolving corruption investigations in the country, Moody’s said.

The ratings also consider the business challenges related to the ongoing investigations, which create management distractions that may hinder efforts to improve operations and corporate governance amid the already challenging industry fundamentals, the agency said.

The ratings remain on review reflecting continued concern about potential liquidity pressures that could arise as a consequence of not providing timely financial statements, Moody’s said.

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