Moody's slashes Americanas

Moody's Investors Service said it downgraded to Caa3 from Ba2 Americanas SA's corporate family rating and the ratings of the backed senior unsecured notes issued by JSM Global Sarl and B2W Digital Lux Sarl, both guaranteed by Americanas. Moody's also placed all ratings under review for further downgrade.

The downgrades follow Americanas' Friday announcement, that it was granted a provisional injunction to suspend the effects of all contractual imposition of debt acceleration or obligations regarding the financial instruments of the group, the agency said.

Last week, Americana’s reported accounting problems that were found in accounting entries that reduced the balance in the suppliers’ account related to previous fiscal years, including the fiscal year 2022.

“Moody's believes that absent of a deal with creditors to safeguard liquidity the company is likely to enter judicial recovery within 30 days from the announcement. During the injunction period, Moody's believes the company will also present alternatives to improve its capital structure including the negotiation of a possible capital injection from its reference shareholders. The rating actions also reflect the heightened governance risks, in particular lack of adequate controls and transparency, which substantially undermines management credibility,” the agency said in a press release.

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