Fitch downgrades Ouro Verde

Fitch Ratings said it downgraded the national scale rating and local debentures for Ouro Verde Locacao e Servico SA to CCC(bra) from A+(bra).

Fitch also downgraded the company's long-term foreign and local currency issuer default ratings to CCC from BB-.

Ouro Verde's ratings have been on rating watch negative since September due to the arrest of Celso Frare, the company's controlling shareholder.

The arrest was part of a state level investigation concerning alleged bribes to Parana's former governor related to equipment contracts between Parana's government and Ouro Verde.

At that time, Fitch noted that Frare's arrest heightened uncertainties about the closing of Brookfield Business Partners LP's acquisition of 55% of Ouro Verde's shares and voting rights for R$660 million and that a cancelation of the deal would materially impact the company's financial profile.

The closing of the acquisition is still uncertain, the agency said.

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