Moody’s drops BR Malls notes to Ba2

Moody's Investors Service said it downgraded the rating on BR Malls International Finance Ltd.’s dollar-denominated guaranteed senior unsecured perpetual notes to Ba2 from Ba1.

The outlook was revised to negative from stable.

This action and outlook revision for BR Malls were taken as a result of Moody's having downgraded Brazil's issuer and bond ratings to Ba2 with a negative outlook from Baa3 under review for a possible downgrade.

According to Moody's, BR Malls' operating performance is linked to the strength of the Brazilian economy, which is undergoing an economic shock with prospects of a slow recovery. The combined effect of the volatility in the local economy, a challenging political atmosphere, higher interest rates and a continued decline in consumer spending could negatively impact BR Malls' credit profile.

At the same time, Moody's America Latina downgraded BR Malls Particapacoes, SA's global scale senior unsecured and corporate family ratings to Ba2 from Ba1 and affirmed the national scale senior unsecured and corporate family ratings at Aa2.br. The outlook was revised to negative from stable.

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