Moody's downgrades Magnesita

Moody's downgrades Magnesita

Brazil Bonds

Moody's has downgraded Magnesita Refratarios to B2 from B1, with negative outlook, citing weak leverage and interest coverage stemming from poor fundamentals in the steel industry.  The Brazilian refractories producer had a cash flow position of BRL523m ($132m) as of September of this year. However, Moody's said it was concerned about Magenesita's reliance on the steel industry, which, combined with the fall in commodity prices, could have negative effects on the company’s cash flow.

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