S&P may cut Brazilian entities
Reuters, Friday, January 15, 1999 at 16:37
(Press release provided by Standard & Poor's)
NEW YORK, Jan 15 - Standard & Poor's today placed its
ratings on eight Brazilian corporations, three subsovereign
governments, and one structured transaction on CreditWatch with
negative implications (see list below).
In addition, the outlook on Radio e Televisao Bandeirantes
Ltda. has been revised to negative from stable.
The actions result from the decision of the Brazilian
Central Bank to allow the real to trade freely; government
officials have stated their intent to announce new foreign
exchange measures next week.
In the very near term, Standard & Poor's will be reviewing
the listed credits to determine their capacity to service
off-shore debt obligations in light of volatile and weak
exchange rates.
Other concerns center on the impact of these changes upon
the economy, inflation and the already fragile market
confidence that has impeded many Brazilian companies from
gaining access to the foreign debt markets.
The placement of Sadia S.A.'s local currency rating on
CreditWatch has a negative impact on the structured finance
transaction Sadia IFC Trust, as the rating on this transaction
is based on and closely related to Sadia's creditworthiness as
expressed by its local currency rating.
The transaction's rating is not constrained by the
Brazilian government foreign currency rating, Standard &
Poor's said.
RATINGS PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS
Companhia de Electricidade do Rio de Janeiro
Foreign currency corporate credit rating B+
Local currency corporate credit rating BB-
Eletrobras - Centrais Eletricas Brasileiras S.A.
Foreign currency corporate credit rating B+
Local currency corporate credit rating BB-
Espirito Santo Centrais Eletricas S.A.
Foreign currency corporate credit rating B+
Local currency corporate credit rating BB-
Senior unsecured debt rating B+
Bahia (State of)
Foreign currency issuer credit rating B+
Ceara (State of)
Foreign currency issuer credit rating B+
Rio de Janiero (City of)
Foreign currency issuer credit rating B+
Senior unsecured note rating B+
Americel S.A.
Foreign currency corporate credit rating B
Local currency corporate credit rating B
Localiza Rent a Car S.A.
Local currency corporate credit rating BB-
MRS Logistica S.A.
Local currency corporate credit rating BB-
Senior unsecured debt rating B
Sadia S.A.
Local currency corporate credit rating BB+
Trikem S.A.
Foreign currency corporate credit rating B+
Senior unsecured debt B+
STRUCTURED FINANCE TRANSACTIONS:
OUTSTANDING RATINGS PLACED ON CREDITWATCH WITH NEGATIVE
IMPLICATIONS
Sadia IFC Trust
US$165 million trust certs due Nov. 2, 2008 BB+
OUTLOOK REVISED TO NEGATIVE FROM STABLE
Radio e Televisao Bandeirantes Ltda.
Foreign currency corporate credit rating B-
Local currency corporate credit rating B-
Copyright 1999, Reuters News Service
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