Research Update: Invepar Group Ratings Lowered To 'CCC' And 'brB-' As Refinancing Risk Increases Amid Challenging Market Conditions

Brazil-based infrastructure operator Invepar faces increased refinancing risks because the holding company's R$1.37 billion debentures mature in April 2021, while economic and credit market conditions have deteriorated significantly. On March 31, 2020, S&P Global Ratings lowered its global scale issuer credit rating on Investimentos e Participações em Infraestrutura S.A. (Invepar) to 'CCC' from 'CCC+' and the national scale rating to 'brB-' from 'brBB-'. We also lowered our ratings on Concessionária Auto Raposo Tavares S.A. (CART) to 'brB-' from 'brBB-'. In addition, we lowered the issue-level rating on Invepar's 3rd and 5th debentures issuances to 'brB-' and 'brCCC+', respectively, while lowering the rating on Metrobarra S.A.'s debentures to 'brB-'. The negative outlook on Invepar reflects the possibility that we could further

...- Brazil-based infrastructure operator Invepar faces increased refinancing risks because the holding company's R$1.37 billion debentures mature in April 2021, while economic and credit market conditions have deteriorated significantly. - On March 31, 2020, S&P Global Ratings lowered its global scale issuer credit rating on Investimentos e Participat)es em Infraestrutura S.A. (Invepar) to '###' from '###+' and the national scale rating to 'brB-' from 'brBB-'. We also lowered our ratings on Concessionßria Auto Raposo Tavares S.A. (CART) to 'brB-' from 'brBB-'. In addition, we lowered the issue-level rating on Invepar's 3rd and 5th debentures issuances to 'brB-' and 'brCCC+', respectively, while lowering the rating on Metrobarra S.A.'s debentures to 'brB-'. - The negative outlook on Invepar reflects the possibility that we could further lower our ratings in the next six to 12 months, especially in the case of a default or distressed exchange, given that we expect much weaker operating performance...

Research Update