NEW YORK--(BUSINESS WIRE)--Fitch Ratings has downgraded Ceagro Agricola Ltda's (Ceagro) foreign and local currency Issuer Default Ratings (IDRs) to 'RD' from 'C' and the national scale rating to 'RD (bra)' from 'C (bra)'. Fitch has also affirmed Ceagro's senior notes at 'C/RR4'.
KEY RATING DRIVERS
The downgrades follow the expiration of the 15-day grace period after the non-payment of the company's interest payments for its May 2016 senior notes. Payment of the bond was due on May 16, 2015 with the 15 day grace period expiring on May 31, 2015.
The company is currently negotiating with banks for a 60 days standstill agreement, and KPMG has been hired to provide lenders with an assessment of its liquidity and cash flow forecasting, and provide its views on a potential recovery plan.
The company's ratings could be revised to 'D' from 'RD' pursuant to Fitch's rating definition. An upgrade is unlikely at this time.
FULL LIST OF RATING ACTIONS
Fitch has taken the following rating actions on Ceagro Agricola Ltda:
--Foreign and local currency IDRs downgraded to 'RD' from 'C';
--National scale rating downgraded to 'RD (bra)' from 'C (bra)';
--USD100 million senior notes due 2016 affirmed at 'C/RR4'.
Additional information is available at 'www.fitchratings.com'.
Corporate Rating Methodology - Including Short-Term Ratings and Parent and Subsidiary Linkage (pub. 28 May 2014)
Recovery Ratings and Notching Criteria for Non-Financial Corporate Issuers (pub. 18 Nov 2014)