...- Movida Participat)es S.A. (Movida) is the third-largest car rental and fleet management company in Brazil, while it has a large exposure to the more volatile rent-a-car (RaC) segment. - The company has recently proposed to issue senior unsecured notes. We expect Movida to use part of the proceeds to fund a more aggressive fleet growth strategy. Still, the likely higher cash flows should compensate for the higher debt over the next few years. - On Jan. 25, 2021, S&P Global Ratings assigned its 'B+' issuer credit rating to Movida. At the same time, we affirmed our 'brAA' Brazilian national scale. We also affirmed the 'brAA' issue-level rating on the company's senior unsecured local debentures, and kept a recovery rating of '3' (65%) on them unchanged. - The stable outlook reflects our expectation of increasing cash flows over the next few quarters thanks to the debt-funded fleet growth, which should keep credit metrics relatively stable. We expect the company to post EBIT interest coverage...
