S&P affirms MRS Logistica

S&P said it affirmed its BB- global scale and brAA- Brazilian national scale corporate credit ratings on MRS Logistica SA.

The outlook is stable.

The agency also affirmed the brAA- issue-level rating on the company’s senior unsecured debentures.

The recovery rating remains at 3, reflecting a meaningful recovery of 50%-70% (rounded estimate: 65%) following a restructuring post-default scenario.

“Despite MRS's status as the most efficient railroad operator in the country, we currently cap the rating on the company at the sovereign level,” S&P said in a news release.

“This is due to our view that under MRS's current capital structure with some short-term debt concentration, sizable capex and all cash position invested in the country, MRS's liquidity position could be impaired amid a sovereign default scenario, hindering its ability to maintain debt payments.”

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