Fitch downgrades Americanas

Fitch Ratings said it downgraded Americanas SA's long-term foreign-currency and local-currency issuer default ratings to C from CC, and its long-term national scale rating to C(bra) from CC(bra). The agency also dropped the rating of the senior unsecured global notes issued by its wholly owned subsidiaries JSM Global Sarl and B2W Digital Lux Sarl to C/RR4 from CC/RR4, and the rating of Americanas' unsecured debentures to C(bra) from CC(bra).

“The downgrade to C follows Americanas' announcement that it has obtained an ‘injunction relief’ from Rio de Janeiro's court establishing, among other protection measures, the suspension of enforceability of all obligations related to financial instruments, such as debt principal and interest,” Fitch said in a statement.

If Americanas formally announces a restructuring plan, the agency said it would lower the ratings to RD to reflect a restricted default or D if the company files for bankruptcy protection.

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