The cost advantages in the production of sugar and ethanol, and the scale that Copersucar brings are positive business factors, but the firm's financial profile is aggressive. We are assigning our 'B' global scale and 'brBBB-' Brazilian national scale corporate credit ratings to Virgolino, while also assigning a 'B' rating to its finance subsidiary's forthcoming senior unsecured notes issuance. The outlook is stable. We expect that positive fundamentals for sugar will help the company reduce leverage and improve its liquidity position. On Jan. 12, 2011, Standard & Poor's Ratings Services assigned its 'B' global scale and 'brBBB-' Brazilian national scale corporate credit ratings to Brazilian sugar and ethanol producer Virgolino de Oliveira S.A. - A--car e -lcool. At the same...
Companies mentioned in this report are: Virgolino de Oliveira S.A. - Acucar e Alcool,Virgolino de Oliveira Finance Ltd
Action: New Rating
Action: Outlook: Stable
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Product Type: Research Update
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