Moody's cuts Usina Coruripe

Moody's Investors Service said it downgraded Usina Coruripe Acucar e Alcool’s corporate family rating and its senior secured notes to B2 from B1. The notes were issued by Coruripe Netherlands BV and backed by Coruripe and GTW Agronegocios SA. The outlook was changed to negative from stable.

“The downgrade was prompted by Coruripe's weakening liquidity with an estimated R$524 million in cash and R$819 million in short-term debt at the end of March 2023. Negative rating pressure would increase if Coruripe is unable to refinance its short-term lines and raise new debt to reinforce its liquidity during the present harvest, April 2023 through March 2024,” the agency said in a press release.

The weaker outlook mirrors the company’s anemic liquidity and increased refinancing risk. Unless Coruripe can reinforce its liquidity and refinance its short-term debt, the ratings could be further downgraded, Moody’s warned.

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