Brazil Beef Goes Off

Fitch and Moody’s have downgraded Arantes’ ratings after the company filed for bankruptcy as it is unable to rollover short term lines of credit or meet financial obligations created by derivative losses of about BRL230m. Moody’s chopped Arantes’ corporate family rating and guaranteed foreign-currency debt ratings to Ca from Caa1. Fitch cut its local and foreign currency IDR to D from CC. Brazilian beef exporter Arantes on December 19 missed a scheduled $8m interest payment of its $150m senior unsecured notes due 2013.