Moody’s trims Usina Coruripe

Moody's Investors Service said it downgraded Usina Coruripe Acucar e Alcool’s corporate family rating to B3 from B2 and the backed senior secured global notes issued by Coruripe Netherlands BV to B3 from B2. Coruripe and GTW Agronegocios SA guarantee the notes.

“The downgrade was prompted by Coruripe's persistently weak liquidity with an estimated R$384 million in cash, and R$677 million in marketable inventories, compared to R$1.5 billion in short-term debt (including leases) as of September 2023.

“The carry of such inventories and debt maturities makes the company reliant on the constant refinancing of short-term lines. Moody's expects Coruripe cash balance to replenish until the end of the harvest, March 2024, with the sale of its sugar and ethanol inventories,” the agency said in a press release.

The outlook is negative.

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