...April 8, 2025 This report does not constitute a rating action. Sao Paulo (S&P Global Ratings) April 8, 2025--S&P Global Ratings said today that the proposed capital increase of R$2 billion announced by Minerva S.A. (Minerva; ##/Stable/--, brAAA/Stable/--) on April 7 will alleviate pressures on credit metrics, but it has no immediate ratings impact. The proceeds are expected to be fully allocated to prepay debt, particularly the company's outstanding senior unsecured bonds due 2031, and other short-term maturities. This reinforces our view that Minerva is committed to reducing leverage, which can lead to higher dividend payout starting in 2026. We anticipate leverage could decrease by up to 0.5x by year end 2025, and if there is an additional subscription related to the proposed warrants, leverage could further decrease an additional 0.2x. In our recently published "Minerva S.A., March 28, 2025," leverage in 2025 would decrease to 3.0x, from the previously estimated 3.3x, while funds from...
