S&P downgrades Paranapanema

S&P said it lowered the corporate credit ratings assigned to Paranapanema SA on the global scale to CCC- from B and on the national scale to brCCC- from brBB-.

The agency also said it withdrew the ratings at the company's request.

At the time of the withdrawal, the ratings were on CreditWatch with negative implications, S&P said.

Paranapanema announced that it hired an advisory firm to implement measures to improve the company's capital structure, the agency said.

S&P said it believes such measures include renegotiating terms and conditions with current debt holders, which would likely result in a debt restructuring.

Paranapanema continues to face challenges due to the weak economic conditions in Brazil, which affect demand for its products, the agency said.

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