Fitch rates MRS Logistica BB+, AAA(bra)

Fitch Ratings said it assigned new ratings to MRS Logistica SA, including a long-term national rating of AAA(bra), local-currency issuer default rating of BBB- and foreign-currency issuer default rating of BB+.

The outlook is negative.

The ratings are constrained by Brazil's BB+ country ceiling and the negative rating outlook on the sovereign.

MRS generates its revenues in Brazil, Fitch explained, and the company does not have cross-border issuances in place.

The company’s ratings also reflect its strong and resilient operational cash generation, conservative capital structure, robust financial flexibility and very low exposure to competition, the agency said.

The company's business model is strong due to the captive demand for transportation and low exposure to the inherent volatilities of business environment in Brazil and the iron ore price cycle, Fitch said.

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