Moody's drops Rumo outlook to negative

Moody’s |Investors Service said it changed its outlook for Rumo SA to negative from stable and affirmed the Ba2 ratings on the company and the $500 million of senior unsecured sustainability-linked notes due in 2032 it guarantees that were issued by Rumo Luxembourg Sarl.

“The change in Rumo's rating outlook to negative from stable reflects Moody's expectation of negative free cash flow over the next two years and execution risks related to the company's expansion in Mato Grosso, which leaves the company exposed to market conditions in 2024-2025 to maintain adequate liquidity and credit metrics,” Moody’s said in a press release.

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