Research Update: Brazilian Infrastructure Group Invepar Downgraded To 'CCC-', Put On CreditWatch Negative On Greater Liquidity Pressures

On May 24, 2023, the creditor of Linha Amarela S.A.'s (Lamsa's) second debentures decided not to grant another waiver, triggering the payment acceleration. (Lamsa is a subsidiary of Investimentos e Participacoes em Infraestrutura S.A. – Invepar [Invepar]). Although the debt was early amortized with Lamsa's own cash position, the event triggered a cross-default clause of Invepar's debentures, for which the group received an eight-day waiver until June 1, 2023. Although we believe creditors have incentives not to accelerate the payment of Invepar's debentures, given ongoing negotiations over its debt restructuring, this is another event outside of Invepar's control that weighs on its capacity to repay its debt. The group continues to depend on favorable events, including the successful bidding for

...- On May 24, 2023, the creditor of Linha Amarela S.A.'s (Lamsa's) second debentures decided not to grant another waiver, triggering the payment acceleration. (Lamsa is a subsidiary of Investimentos e Participacoes em Infraestrutura S.A. ¡ Invepar [Invepar]). Although the debt was early amortized with Lamsa's own cash position, the event triggered a cross-default clause of Invepar's debentures, for which the group received an eight-day waiver until June 1, 2023. - Although we believe creditors have incentives not to accelerate the payment of Invepar's debentures, given ongoing negotiations over its debt restructuring, this is another event outside of Invepar's control that weighs on its capacity to repay its debt. The group continues to depend on favorable events, including the successful bidding for the concession of BR-040 S.A. (Via 040) and a favorable conclusion of Lamsa's legal dispute with the city of Rio de Janeiro, in order to address significant maturities of Via 040's debt (October...

Research Update