Moody’s changes Votorantim view to negative

Moody’s Investors Service said it changed the outlook to negative from positive and affirmed the Ba1 rating on Votorantim SA’s $240 million of senior unsecured notes due 2021 at Ba1. The rating on the $144 million of senior unsecured notes due 2024 issued by Votorantim’s wholly owned subsidiary Companhia Brasileira de Alumino and guaranteed by Votorantim was also affirmed at Ba1.

At the same time Moody’s affirmed Votorantim’s corporate family rating at Ba1 in the global scale and its Aaa.br in the Brazilian national scale.

“The change in outlook to negative was prompted by the sharp decline in revenues expected for 2020 as a result of lower demand and lower profitability scenario for the main products in its portfolio including cement, zinc and byproducts, aluminum, energy, long steel and banking,” said Moody’s in a press release.

The exception so far, the company’s orange juice segment, benefitting from higher demand from people staying quarantined at home, the agency said.

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