Fitch downgrades Raízen's ratings to BBB- and places it on Negative Watch

By Crisley Santana* São Paulo, 10/27/2025 - Fitch Ratings downgraded the long-term foreign and local currency issuer default ratings (IDRs) of Raízen S.A. and Raízen Energia S.A. from BBB to BB- and did the same with the unsecured senior notes of Raízen Fuels Finance S.A. that mature between 2027 and 2054. At the same time, it maintained the national long-term ratings of the companies and the issued debentures at AAA (bra), with a stable outlook on this scale. All international IDRs are now under Negative Rating Watch (RWN). For the agency, the deterioration of the capital structure, caused by increased debt and weaker operating cash flow than expected, supports the downgrade. Without the sale of major assets or capital injection, Fitch projects that net leverage will remain around 4.0 times until the fiscal year ending in March 2026—a level incompatible with the former BBB grade. Controllers are discussing a possible capitalization, possibly with the entry of a third partner, but ...