By Brazil Stock Guide – Moody’s Ratings downgraded Raízen S.A. (B3: RAIZ4) to Ba1 from Baa3, pushing the bioenergy group out of investment-grade territory amid ongoing concerns over leverage and cash-flow consistency. The rating remains under review for a possible further downgrade.
Moody’s said the decision reflects persistent pressure on Raízen’s credit metrics, including weaker-than-expected free cash flow, higher working-capital needs and slower margin normalization in its renewables and trading segments. The agency highlighted that the review process will focus on the company’s deleveraging trajectory, liquidity profile and ability to stabilize operating performance in the coming quarters.
Raízen, jointly controlled by Cosan and Shell, has been undergoing a multi-year capex cycle to expand its second-generation ethanol (E2G) platform and boost energy-transition assets. While the strategy aims to secure long-term growth, elevated investment levels and volatile margins have kept leverage above thresholds consistent with investment-grade ratings.
The company has not issued an additional statement beyond the regulatory filing signed by CFO Rafael Bergman, confirming the downgrade and the ongoing review.
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