Brazilian Infrastructure Group Invepar Downgraded To 'CCC+' On Unsustainable Capital Structure, Still On Watch Negative

Brazil-based infrastructure operator Invepar still faces short-term refinancing risks at the holding level because the company is still set to rollover approximately R$1 billion of debt maturing on March 11, 2019, after several attempts to refinance, indicating its weak access to both banking and capital markets. At this point, we don't expect a permanent solution in the next few months to address the company's currently unsustainable capital structure because dividends received by the holding company aren't enough to service its sizable debt. The group now depends on positive outcomes of events that it doesn't control, including reducing debt with the proceeds from fresh equity or asset sales. On Feb. 11, 2019, S&P Global Ratings downgraded Invepar and its subsidiaries to

...+ Brazil-based infrastructure operator Invepar still faces short-term refinancing risks at the holding level because the company is still set to rollover approximately R$1 billion of debt maturing on March 11, 2019, after several attempts to refinance, indicating its weak access to both banking and capital markets. + At this point, we don't expect a permanent solution in the next few months to address the company's currently unsustainable capital structure because dividends received by the holding company aren't enough to service its sizable debt. The group now depends on positive outcomes of events that it doesn't control, including reducing debt with the proceeds from fresh equity or asset sales. + On Feb. 11, 2019, S&P Global Ratings downgraded Invepar and its subsidiaries to '###+' from 'B' on the global scale and to 'brBB-' from 'brA-' on the Brazilian national scale. + The ratings remain on CreditWatch with negative implications, reflecting the risk of a multiple-notch downgrade if...

Ratings Action