Banco Cruzeiro do Sul SA’s bonds tumbled after the Brazilian payroll lender’s credit rating was cut two levels by Moody’s Investors Service.
Dollar bonds issued by Cruzeiro do Sul due in 2016 fell 6.98 cents to 80 cents on the dollar at 12:38 p.m. New York time, according to data compiled by Bloomberg. The yield on the notes surged 273 basis points to 15.4 percent.
Moody’s cut the bank’s credit rating two notches yesterday to B2, or five steps below investment grade.
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