Raízen was excluded from the Ibovespa and other indices of B3, the Brazilian Stock Exchange, after filing for extrajudicial reorganization to restructure approximately R$ 65 billion in debt.
The exit from the main stock market indicator comes amid the company's deteriorating financial situation, which has seen its share value fall by more than 67% in the last 12 months.
The shares have been trading below R$1,00 in several recent trading sessions, characterizing them as penny stocks, a term used for assets with very low nominal value and high volatility.
Exclusion affects B3 indices.
In addition to the Ibovespa index, Raízen was removed from 15 other B3 portfolios. This move reflects the impact of the crisis on the liquidity and representativeness of stocks in the market. Other companies, such as Grupo Pão de Açúcar, were also excluded from indices, although on a smaller scale.
According to B3The exclusion of companies follows pre-defined technical criteria, without discrimination, considering factors such as price, liquidity, and governance.
Credit downgrade increases pressure
Raízen's financial crisis also led to the downgrading of debt instruments linked to the company. The agency Fitch Ratings The rating of CRAs (Certificates of Receivables from Agribusiness) linked to the company was reduced to “Csf(bra)”, indicating a significant increase in credit risk.
The CRAs (Certificates of Real Estate Receivables) are backed by debentures issued by Raízen Energia, a subsidiary responsible for a large portion of the group's operating debt. Therefore, the company's financial performance directly impacts its ability to repay these securities.
Previously, Raízen itself had already had its corporate rating downgraded to "C(bra)", reflecting the fragile financial situation.
BNDES seeks restructuring alternatives.
BNDES (Brazilian Development Bank) reported that it is in dialogue with the company, its shareholders, and the market to seek solutions that contribute to the company's recovery.
According to the bank's president, Aloizio Mercadante, the institution is monitoring the case due to Raízen's importance to the biofuel sector in Brazil.
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