Moody's cuts the Raizen stock rating to Caa3

Published on 10/06/2026 at 12:16 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Moody's cut the Raizen stock rating from Caa1 to Caa3 on October 5, 2026. Revenue rose 4.00 percent to BRL 51.46 billion.

Raizen, BRRAIZACNPR6, Illustration mit AI erstellt.

Moody's cut the Raizen stock rating from Caa1 to Caa3 on October 5, 2026, according to El Fondo. The downgrade adds credit pressure to a company already restructuring its balance sheet and preparing a new governance structure.

Debt pressure meets operational recovery

Raizen reported revenue of BRL 51.46 billion for the first quarter of the 2026/27 harvest year, up 4.00 percent from the same period a year earlier, according to Seu Dinheiro. Adjusted EBITDA more than doubled to BRL 3.85 billion during the April to June 2026 period, showing that operating performance improved even as financing costs remained a major drag.

The company also reduced its net loss by 11.00 percent to BRL 1.64 billion in the same harvest quarter. The financial result was negative at BRL 2.97 billion, 42.40 percent worse than a year earlier, leaving the improvement in operations exposed to the cost of debt.

Restructuring vote sets the next test

Shareholders are scheduled to vote on October 30, 2026, on measures that include a new board, a capital reduction of up to BRL 35 billion and an authorized capital limit of up to 200 billion shares, Investidor10 reported. The package is tied to the out-of-court recovery plan approved in July 2026 and could reshape the relationship between Raizen's fuel distribution, sugar and ethanol businesses.

The proposed capital reduction would involve distributing securities issued by Raizen Energia to shareholders. That structure gives the vote direct importance for investors because it combines governance changes with a possible separation of operating assets and a reallocation of capital.

Market value remains compressed

As of October 6, 2026, Raizen had a market capitalization of BRL 3.7 billion on B3. Its 52-week range was BRL 0.21 to BRL 1.13, placing the equity value against a wide trading history and the credit risks highlighted by the Caa3 rating.

Credit rating defines the market lens

Raizen's latest figures show a clear split between operating recovery and financial strain. Revenue and adjusted EBITDA improved in the first quarter of the 2026/27 harvest year, while the BRL 2.97 billion negative financial result and the rating downgrade keep debt service at the center of the investment case.