Brazilian fertilizer and chemical producer Unigel’s credit score was downgraded by Fitch Ratings to C from CCC after the company failed to pay a coupon on its dollar bond due in 2026, according to an Oct. 3 report by Bloomberg.
Unigel now has a 30-day grace period to pay the interest before triggering an event of default, Fitch analysts wrote in a statement. If Unigel isn’t able to raise additional funds, “the company will need some combination of asset sales, an equity injection from its shareholder, or a renegotiation of its natural gas supply contracts,” according to Fitch.