Research Update: Brazilian Infrastructure Group Invepar Upgraded To 'CCC+' From 'D' On Debt Restructuring Conclusion; Outlook Negative

On Oct. 30, 2023, Invepar announced the conclusion of its debt restructuring, including the renegotiation of the debt of its subsidiary BR-040 S.A. (Via 040, not rated), which Invepar guarantees. Because Invepar has completed the debt restructuring that we assessed as distressed, we're now reevaluating the group's capital structure. The group extended the maturity of its debt at the holding level to August 2026 (from August 2024) and the debt of Via 040 to October 2027 (from October 2023), easing short-term liquidity pressures. Nevertheless, the group's business has shrunk following the past transfer of some assets and is now limited to the Guarulhos airport operations, which has its own financial commitments and may not distribute dividends until at least 2027.

...- On Oct. 30, 2023, Invepar announced the conclusion of its debt restructuring, including the renegotiation of the debt of its subsidiary BR-040 S.A. (Via 040, not rated), which Invepar guarantees. - Because Invepar has completed the debt restructuring that we assessed as distressed, we're now reevaluating the group's capital structure. The group extended the maturity of its debt at the holding level to August 2026 (from August 2024) and the debt of Via 040 to October 2027 (from October 2023), easing short-term liquidity pressures. - Nevertheless, the group's business has shrunk following the past transfer of some assets and is now limited to the Guarulhos airport operations, which has its own financial commitments and may not distribute dividends until at least 2027. Invepar continues relying on the conclusion of Linha Amarela S.A.'s judicial dispute to completely amortize its debentures. - Consequently, on Nov. 1, 2023, S&P Global Ratings raised its global scale rating on Invepar to '###+'...

Research Update