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Stock impact report

Cosan S.A. (CSAN) Gets Negative Outlook from Fitch as Leverage Remains High [Yahoo! Finance]

Cosan S.A. ADS (CSAN) 
Company Research Source: Yahoo! Finance
Cosan S.A. (NYSE:CSAN)'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB,' and updated the outlook to negative from stable. According to the statement, the rating agency reaffirmed the unsecured debentures at 'AAA(bra)' and National Scale Rating at 'AAA(bra). The agency cites several reasons for this weak guidance, including the company's high leverage and sustained dependence on asset sales. Fitch Ratings notes that the earlier BRL10.5 billion follow-on completion offers “relief to Cosan as it advances its divestment strategy, aiming to deleverage the company over the next three years.” Photo by jason briscoe on Unsplash On the positive side, the company's cash flow is expected to turn modestly positive in the years ahead, thanks to declining debt levels and lower interest rates. The agency projects an annual average dividend of BRL 2.3 billion to Cosan S.A. (NYSE:CSAN), primarily from the subsidiaries of Compass and Rumo. Earlier on December 5, HSBC Show less Read more
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