Alfa, Aracruz, Cemex, Cosan, Embraer: Latin Equity Preview

By William Freebairn and Paulo Winterstein

Oct. 13 (Bloomberg) -- The following companies may have unusual price changes today in Latin America trading. Stock symbols are in parentheses, and share prices are from the previous close. Preferred shares are usually the most-traded class of stock in Brazil.

The MSCI Latin America Index fell 6.5 percent to 2,033.21 on Oct. 10. Markets in Argentina and Colombia are closed today for a holiday.

Brazil

Aracruz Celulose SA (ARCZ6 BS): The eucalyptus-pulp maker that posted a derivatives loss of about $1 billion had its debt rating lowered by Standard & Poor's on concern a slumping Brazilian currency may widen the company's loss. The rating was reduced one level to BBB-, the lowest for investment-quality securities, S&P said Oct. 10 in a statement. Aracruz fell 1 percent to 2.97 reais.

Cosan SA Industria & Comercio (CSAN3 BS): The world's second-biggest sugar-cane processor had its credit rating cut one level to BB-, three levels below investment grade, by Standard & Poor's on concern a global slowdown in economic growth will make credit more costly. The ratings provider expects ``profitability and cash flows to remain volatile,'' according to an Oct. 10 note. Cosan fell 8.7 percent to 11.39 reais.

Empresa Brasileira de Aeronautica SA (EMBR3 BS): The world's fourth-largest aircraft maker will take a third-quarter charge of 178 million reais ($77 million) from derivatives after the Brazilian real tumbled, according to a statement late Oct. 10. Embraer dropped 10 percent to 9.56 reais.


Rodobens Negocios Imobiliarios SA (RDNI3 BS): The homebuilder said its contracted sales rose 3 percent in the third quarter while the value of projects in development declined 17 percent. Contracted sales rose to 103 million reais ($44.5 million) in the July-to-September period, compared with 100 million reais a year earlier, Sao Jose do Rio Preto, Brazil-based Rodobens said in an Oct. 10 regulatory filing. Rodobens fell 1.7 percent to 11.50 reais.

Mexico

Alfa SAB (ALFAA MM): The world's largest maker of engine heads and blocks said third-quarter earnings will be reduced by a $191 million loss from currency and interest-rate derivatives contracts. The company also expects to record a net exchange rate loss of $61 million during the quarter, Alfa said in a statement to the Mexican stock exchange Oct. 10. Alfa fell 14 percent to 34.30 pesos.

Cemex SAB (CEMEXCP MM): The Rinker Material LLC unit of the largest cement-maker in the Americas had its debt rating reduced to below investment grade by Moody's Investors Services on Oct. 10. The agency lowered its rating on $150 million in Rinker debt to Ba1, one step below investment grade. Cemex dropped 16 percent to 8.85 pesos.

Gruma SAB (GRUMAB MM): The world's largest maker of corn flour was reduced to ``hold'' from ``buy'' at Citigroup Inc., which cited the need for the miller to disclose more information on financial instruments it holds. Citigroup e-mailed the report Oct. 10. Gruma fell 13 percent to 14.30 pesos.

To contact the reporters on this story: William Freebairn in Mexico City at wfreebairn@bloomberg.net; Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net.