Standard & Poor’s (S&P) Global Ratings and Fitch Ratings lowered Unifin’s risk rating, after the company announced the non-payment of interest and principal on its debt.
S&P lowered the long-term ratings from “B+” to “D”, while Fitch upgraded it from “B” to “C”.
On Tuesday, the titles of Unifin Financiera, which has not specified the amounts of its obligations at stake, closed at historical lows, with a collapse of 89%.
Unifin, which offers leasing, financial factoring, auto credit, insurance and fleet management, said it will meet its non-recourse private securitization obligations.
“We expect a widespread default encompassing all of the company’s financial obligations,” S&P said in a statement late Tuesday.
Fitch believes that Unifin faces risks in the company’s revised strategy and uncertainty regarding its franchise and long-term viability.
“Fitch believes that these execution risks have a negative impact on the ratings in combination with other factors,” he noted.
The company detailed in a statement on Monday night that the measure will be extended for as long as it requires negotiating with the claimants, during which time, it added, it will continue to comply with the payment of obligations under private securitization structures.
Unifin also said that it “intends” to negotiate standby agreements with its creditors that will allow it to implement the restructuring, negotiate and finalize potential financing, refinancing, investment and capitalization operations.
With information from Reuters
