S&P lowers Odebrecht Engenharia e Construcao

Standard & Poor's said it lowered the global scale corporate credit rating on Odebrecht Engenharia e Construcao SA to BB- from BB and national scale long-term rating to brA- from brA+.

S&P also said it lowered the short-term corporate credit rating on the company to brA-2 from brA-1.

The outlook remains negative.

The agency also said it lowered the ratings on Odebrecht Finance Ltd. to BB- from BB.

The recovery rating of 4, indicating 30% to 50% expected default recovery, is unchanged.

The agency said it believes a corruption investigation will strain the company’s business due to exacerbated reputation risks.

This is mitigated by the company's large cash balance, light balance sheet and manageable maturity profile, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.