Fitch rates Rumo BB-

Fitch Ratings said it assigned a first-time rating of BB- to the foreign- and local-currency issuer default ratings on Rumo Logistica Operadora Multimodal SA, along with an A(bra) national scale long-term rating.

The outlook is negative.

The ratings reflect the company's strongly leveraged capital structure, coupled with predictable cash flow generation through the economic cycle and solid business position as a railroad and logistic operator in the Brazilian infrastructure industry, Fitch said.

Rumo is part of the Cosan Group, which is viewed as a credit positive, the agency said, and provides reasonable financial flexibility.

The negative outlook reflects the challenges Rumo faces to improve its currently aggressive capital structure and to finance a huge capital expenditure plan amid Brazil's deteriorated macroeconomic and debt environment, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.