Jul. 8 at 10:22 PM
S&P Global Ratings downgraded Cosan's issuer credit rating to B+ from BB- and removed it from CreditWatch Negative, citing a weaker business profile following Raízen's debt restructuring, which significantly diluted Cosan's stake. The agency also lowered the rating on Cosan Overseas' perpetual bonds to B+.
The negative outlook reflects uncertainty surrounding Cosan's divestment strategy and its impact on dividend flows, debt-service coverage, and overall financial flexibility. S&P expects the company's interest coverage ratio to remain below 1.0x over the next two years without additional asset sales, even after Cosan reduced debt by roughly 9 billion reais through a capital increase and Compass' IPO. The agency forecasts consolidated net leverage to improve gradually through 2027 but noted that dividend inflows are still expected to fall short of financing costs.
$CSAN