Fitch might lower Ouro Verde

Fitch Ratings said it placed the BB- long-term issuer default rating for Ouro Verde Locacao e Servico SA on rating watch negative.

The agency said the rating watch negative reflects the uncertainties regarding the completion of the acquisition of 55% of Ouro Verde's shares and voting rights by Brookfield Business Partners LP for R$660 million, following the arrest of Celso Frare, Ouro Verde's current controlling shareholder.

Frare was arrested as part of a state level investigation on corruption charges related to bribes that would have been paid to Parana's former governor over contracts between Parana's government and Ouro Verde. Frare was released on Sept. 14, but investigations are ongoing and any impact on the company, if any, are still unknown, Fitch said.

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