Moody’s downgrades Fleury, debt to Ba2/Aa2.br

Moody's America Latina said it downgraded Fleury SA's corporate family rating and all related ratings to Ba2 (global scale)/Aa2.br (national scale) from Ba1/Aa1.br.

The outlook is negative.

The downgrade follows the downgrade of Brazil's sovereign ratings to Ba2 from Baa3, with a negative outlook.

Fleury generates 100% of its revenues in the local market and, although it operates in a resilient segment, one of its main growth drivers is the creation of formal jobs, which has deteriorated significantly in the last year, and is expected to remain weak at least until the end of 2016.

In Moody’s view, rising unemployment and inflation, coupled with reduced additions to health plans could pressure Fleury's operating performance. Accordingly, Fleury's ratings are unlikely to stand above Brazil's sovereign ratings.

© 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.