S&P cuts Odebrecht Engenharia e Construcao to D

S&P said it lowered its global scale issuer credit rating on Odebrecht Engenharia e Construcao SA to D (default) from CC and lowered the long-term national scale issuer credit rating on the company to D from brCC.

S&P also lowered the short-term national scale rating to D from brC.

In addition, S&P lowered its issue-level ratings on OEC's sister company, Odebrecht Finance Ltd. (OFL), to D from CC. OEC fully guarantee OFL's notes. The 4 recovery rating on this debt, indicating an expectation that lenders would receive average (30%) recovery of their principal in the event of a payment default, remains unchanged.

“The rating actions follow OEC's announcement that upon the expiration of the 30-day grace period applicable to the $11.5 million interest payment on the 2025 unsecured notes, OFL won't make this payment,” S&P said in a news release.

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