Fitch downgrades Odebrecht Engenharia e Construção from CC to C

10/26/18

Rating agency Fitch downgraded Odebrecht Engenharia e Construção (OEC) from CC to C after the company informed the overseas market of the non-payment of bonus interest with a return of 4.375% and said that it will exercise its right a 30-day grace period to honor the commitment. For Fitch, this precedes “a potential debt swap process.”

Fitch notes that the late payment of the relatively small coupon “raises concerns about the company’s willingness and ability to repay future payments.”

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