Brazil-based railroad operator Rumo's execution of its investment plan is on track to improve operating efficiency, which will enable the company to start generating positive free operating cash flow in 2019. We're affirming our 'BB-/B' global scale and 'brAA+/brA-1+' national scale issuer credit ratings on Rumo, and keeping the company's 'bb-' stand-alone credit profile (SACP) unchanged. We're also affirming our 'BB-' rating on Rumo's senior unsecured notes guaranteed by subsidiary Rumo Malha Norte, and its 'B+' senior unsecured notes that don't have guarantees from operating subsidiaries. The stable outlook reflects our expectations that Rumo will continue to make large investments at the same time that it deleverages over the next two years. Although this could improve the company's SACP, the
