Independencia Halts Ops, Takes Downgrade

Brazilian meatpacker Independencia has temporarily suspended operations, while Moody’s cut it to B3 from B2. It is temporarily halting slaughtering of cattle at all of its 14 Brazil units, according to local press reports, due to cashflow problems, and will resume as soon as possible. Moody’s action follows the termination of a tender offer for its 2015 and 2017 last week, the agency says, noting that failure to reduce debt will mean sustained leverage levels above 6.0x. It remains under review for further downgrade. Fellow producer Arantes filed for bankruptcy protection in January, and investors say Independencia is also a candidate to seek protection. S&P placed Independencia’s B rating on credit watch negative.