Moody’s gives Coruripe, notes B1

Moody's Investors Service said it gave a (P)B1 corporate family rating to SA Usina Coruripe Acucar e Alcool and assigned a (P)B1 rating to the company's planned up to $400 million of senior secured notes to be issued by Coruripe Netherlands BV and guaranteed by Coruripe and GTW Agronegocios SA.

“The provisional designation for the ratings will be removed once the notes have been issued, assuming no material changes have occurred to the draft documentation reviewed by Moody's, and Coruripe's guarantee is in full force and effect. The notes will be secured by collateral including: the Iturama mills and equipment and a second lien on receivables relating to the IAA claims (indemnity credits from a judicial process against by the Brazilian federal government as successor to the Brazilian Institute of Sugar and Ethanol––IAA), the agency said in a press release.

The ratings reflect Coruripe’s scale and production in two distinct areas that allow for more stable production but are constrained by the volatile sugar-ethanol sector coupled with its reliance on the Minas Gerais cluster which concentrates 78% of total crushing capacity, Moody’s noted.

The notes are part of Coruripe's liability management strategy, proceeds will be used to repay indebtedness and for general corporate purposes.

The outlook is stable.

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