Fitch Ratings on May 10 downgraded 's long-term foreign and localcurrency issuer default ratings to BB+ and BBB- from BBB- and BBB,respectively, with a negative outlook.

The move, which was part of a number of ratings actionsFitch took on Brazilian corporates, follows the of Brazil's sovereign ratingsearlier in May.

"Brazil's downgrade reflects the deeper-than-anticipatedeconomic contraction, failure of the government to stabilize the outlook forpublic finances, and the sustained legislative gridlock and elevated politicaluncertainty that are sapping domestic confidence and undermining governabilityas well as policy effectiveness," Fitch said.