Fitch lowers Eldorado Brasil

Fitch Ratings said it downgraded Eldorado Brasil Celulose SA's long-term foreign- and local-currency issuer default ratings to B- from BB- and its national long-term rating to BB-(bra) from A(bra). Fitch also lowered the rating of the 2021 unsecured notes issued by Eldorado Intl. Finance GmbH to B-/RR4 from BB-. The notes are guaranteed by Eldorado and Cellulose Eldorado Austria GmbH.

“The downgrades reflect still elevated refinancing risk due to the high uncertainties of the timing of the conclusion of the arbitration process between J&F Investimentos SA (J&F) and Eldorado's minority shareholder, Paper Excellence. The continued delay and uncertainties surrounding the company's future shareholding structure have limited Eldorado's ability to extend its debt profile and improve its capital structure, while it gets closer to the maturity of its $350 million senior notes in June 2021. If Eldorado does not conclude the issuance of new debt in one month, the ratings will be downgraded by more than one notch,” the agency said in a press release.

All ratings remain on rating watch negative.

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