Research Update: Brazilian Infrastructure Group Invepar Downgraded To 'CCC' From 'CCC+' On Higher Liquidity Risks; Outlook Negative

Brazil-based transportation infrastructure group Investimentos e Participacoes em Infraestrutura S.A. – Invepar (Invepar) continues depending on events it does not control--including the reauctioning process of BR-040 S.A. (Via 040, not rated) and the judicial dispute of Linha Amarela S.A. (Lamsa, not rated)--in order to pay the significant maturities of Via 040 (October 2023), and at the holding level (August 2024). That significantly increases the risks of a liquidity crisis in the upcoming months. As a result, on Jan. 24, 2023, S&P Global Ratings lowered its global scale issuer credit rating on Invepar to 'CCC' from 'CCC+' and the national scale rating to 'brB-' from 'brBB'. We also lowered the issue-level ratings on Invepar's third and fifth debentures to 'brCCC' from

... Investimentos e Participacoes em Infraestrutura S.A. ¡ Invepar (Invepar) continues depending on events it does not control--including the reauctioning process of BR-040 S.A. (Via 040, not rated) and the judicial dispute of Linha Amarela S.A. (Lamsa, not rated)--in order to pay the significant maturities of Via 040 (October 2023), and at the holding level (August 2024). That significantly increases the risks of a liquidity crisis in the upcoming months. - As a result, on Jan. 24, 2023, S&P Global Ratings lowered its global scale issuer credit rating on Invepar to '###' from '###+' and the national scale rating to 'brB-' from 'brBB'. We also lowered the issue-level ratings on Invepar's third and fifth debentures to 'brCCC' from 'brB+', and kept the recovery rating at '6'. - The negative outlook on Invepar incorporates the risk that the reauction of Via 040 won't conclude before the maturity of its debt in October 2023, which ultimately could...

Research Update