Bulletin: Rumo S.A. Ratings Not Immediately Affected By Announcement Of Potential Capital Increase

SAO PAULO (S&P Global Ratings) Sept. 25, 2017--S&P Global Ratings said today that its ratings on Rumo S.A. (GS: BB-/Negative/B; NS: brA+/Negative/brA-1) are not immediately affected by the announcement of Rumo's potential capital increase in the indicative amount of R$2.2 billion to R$2.6 billion in the primary offer. The conclusion of the capitalization is subject to market demand for the minimum of 220 million shares, and the final amount of the capitalization is still subject to final share prices and the potential placement of supplemental shares. If the capital increase occurs, we view it as positive for Rumo's stand-alone credit profile (SACP), as it would likely lead to stronger leverage metrics and liquidity. Given its strategic importance to Cosan Logística

...SAO PAULO (S&P Global Ratings) Sept. 25, 2017--S&P Global Ratings said today that its ratings on Rumo S.A. (GS: ##-/Negative/B; NS: brA+/Negative/brA-1) are not immediately affected by the announcement of Rumo's potential capital increase in the indicative amount of R$2.2 billion to R$2.6 billion in the primary offer. The conclusion of the capitalization is subject to market demand for the minimum of 220 million shares, and the final amount of the capitalization is still subject to final share prices and the potential placement of supplemental shares. If the capital increase occurs, we view it as positive for Rumo's stand-alone credit profile (SACP), as it would likely lead to stronger leverage metrics and liquidity. Given its strategic importance to Cosan Logfstica (not rated), Rumo's final ratings are limited to the higher of the SACP (currently 'b+') and the rating of its ultimate parent company Cosan Ltd. (##/Negative/--) minus one notch. Therefore, despite expected improvements in...

Bulletin