Moody’s Chops Aracruz Rating, VCP Outlook

Moody’s Chops Aracruz Rating, VCP Outlook

Funds

Moody's has downgraded the ratings of Aracruz Celulose to Baa3 from Baa2, and subsequently placed on review for downgrade the Baa3 ratings of VCP, with whom Aracruz is planning to merge. The actions come after Aracruz announced losses from currency derivatives transactions that could total $1bn. A continuing review for a further downgrade will focus primarily on overall exposure to derivatives and the degree of potential impact on leverage and liquidity, Moody’s says. VCP’s ratings “could be sta

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