Fitch Downgrades Ceagro Agricola Ltda's IDRs to 'C'

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has taken the following ratings actions on Ceagro Agricola Ltda.:

--Foreign and local currency Issuer Default Ratings (IDRs) downgraded to 'C' from 'B';

--USD100 million senior notes due 2016 downgraded to 'C/RR4' from 'B/RR4';

--National scale rating downgraded to 'C(bra)' from 'BBB(bra)'.

The downgrade follows the missed payment by Ceagro Agricola Ltda. of the coupon relating to the USD100 million senior notes due May 2016 in the amount of USD5.3 million, thus entering a 15-day cure period. The coupon was due May 15. Fitch anticipates that the company will enter in a restructuring process for the debt through a distressed debt exchange.

KEY ASSUMPTIONS

--Increased systemic risk and scarce availability of medium and long-term finance.

RATING SENSITIVITIES

The company's ratings could be downgraded further if the company files for bankruptcy protection.

An upgrade is unlikely at this time given the company's difficulties meeting its payment obligations.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Corporate Rating Methodology' (May 28, 2014).

Applicable Criteria and Related Research:

Corporate Rating Methodology - Including Short-Term Ratings and Parent and Subsidiary Linkage

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749393

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985175

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150521006508/en/

Fitch Ratings
Primary Analyst:
Johnny Da Silva, +1-212-908-0367
Director
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Secondary Analyst:
Gisele Paolino, +55 21 4503 2624
Director
or
Committee Chairperson:
Joe Bormann, CFA, +1-312-368-3349
Managing Director
or
Elizabeth Fogerty, +1-212-908-0526
Media Relations, New York
[email protected]

Source: Fitch Ratings

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