Things appear to be going sour for a Brazilian deal linked to disgraced dairy company Parmalat, despite a reiteration two weeks ago of its triple-A national-scale rating by Standard & Poor's. "There will probably be an early redemption" of the R$150 million (US$52 million) transaction, said a source close to the deal. Senior shares account for R$127.5 million of the volume.

With Itau BBA as lead bookrunner and Santander as co-lead, the deal is a receivables investment fund, a vehicle endemic to Brazil that combines features of a traditional SPV and a mutual fund. Motta, Ferndandes Rocha provided legal counsel.

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