S&P affirms Cosan

S&P said it affirmed its BB- issuer credit ratings on Cosan Ltd., Cosan SA Industria e Comercio and Cosan Lubrificantes e Especialidades SA.

The outlook remains stable.

At the same time, the agency affirmed the BB- issue-level rating on the unsecured notes that Cosan SA guarantees with a recovery rating of 3, which reflects an expectation of meaningful recovery (rounded to 65%).

The agency also affirmed the BB- rating on Cosan Lubrificantes' debt with a recovery rating of 4, which indicates an average recovery (rounded to 45%) in the event of a payment default.

“The affirmation and stable outlook reflect our expectation that CZZ and Cosan SA will continue generating strong and resilient cash flow due to the solid business position of their subsidiaries,” S&P said in a news release.

“We also expect the group to maintain a long-term amortization profile and robust coverage for CZZ's $500 million bond and Cosan SA's about $1.15 billion notes.”

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