Bulletin: Brazilian Infrastructure Operator Invepar's Asset Sale Alleviates Pressure, But Capital Structure Remains Unsustainable

SAO PAULO (S&P Global Ratings) Dec. 20, 2019--S&P Global Ratings said today the announcement that Investimentos e Participações em Infraestrutura S.A. – Invepar (Invepar; global scale: CCC+/Negative/--; local scale: brBB-/Negative/--) signed an agreement to sell its subsidiary Concessionaria Auto Raposo Tavares S.A. (CART; brBB-/Negative/--) should help improve its capital structure. However, we believe that even with the proceeds from the asset sale, Invepar's net resources available to reduce debt wouldn't be significant enough to be a final solution to the group's capital structure. We view the latter as unsustainable because the dividends Invepar receives from operating subsidiaries aren't sufficient to service the sizable debt at the holding level. This debt totaled about R$2.0 billion as of September 2019, with a

...SAO PAULO (S&P Global Ratings) Dec. 20, 2019--S&P Global Ratings said today the announcement that Investimentos e Participat)es em Infraestrutura S.A. ¡ Invepar (Invepar; global scale: ###+/Negative/--; local scale: brBB-/Negative/--) signed an agreement to sell its subsidiary Concessionaria Auto Raposo Tavares S.A. (CART; brBB-/Negative/--) should help improve its capital structure. However, we believe that even with the proceeds from the asset sale, Invepar's net resources available to reduce debt wouldn't be significant enough to be a final solution to the group's capital structure. We view the latter as unsustainable because the dividends Invepar receives from operating subsidiaries aren't sufficient to service the sizable debt at the holding level. This debt totaled about R$2.0 billion as of September 2019, with a notable portion maturing in the first quarter of 2021. In our view, the group still depends on positive outcomes of events that are outside of Invepar's control, including...

Bulletin