Fitch revises Rumo to positive

Fitch Ratings said it affirmed the BB- long-term foreign currency and local currency issuer default ratings of Rumo SA and the rating of the $750 million of unsecured global notes due in 2024 issued by Rumo Luxembourg Sarl, a wholly owned subsidiary of Rumo.

The agency also affirmed the A(bra) national scale long-term ratings of Rumo, its subsidiaries and all of their related unsecured debentures.

At the same time, Fitch assigned an A(bra) rating to the 9th debentures issuance of the subsidiary Rumo Malha Norte SA. The debentures total R$2,375,000,000 and are due in 2023.

The agency withdrew the rating of Rumo Logistica Operadora Multimodal SA.

The outlook for corporate ratings was revised to positive from stable.

Fitch said the outlook revision reflects its expectation of fast deleverage trends following the company's ongoing gains of scale and improving operating profitability. According to the agency’s base case, Rumo's ree cash flow is likely to become neutral to positive as from 2019, when the aggressive investment plans get matured.

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