Research Update: Rumo S.A. Outlook Revised To Positive, Mirroring Action On Parent Cosan; 'BB-' Rating Affirmed

We revised the outlook on Rumo's parent, Cosan S.A., to positive from stable and affirmed the 'BB-' global scale rating. We expect Rumo to maintain solid operating performance amid record crops for both soybeans and corn, increasing cargo volumes with EBITDA margin close to 52% in 2023, given high tariff adjustments, and debt to EBITDA around 2.5x in the next three years. We revised the outlook on Rumo to positive from stable and affirmed the 'BB-' long-term global scale rating, mirroring the action on the parent. We also affirmed our long-term national scale rating on Rumo at 'brAAA', as well as the issue ratings. The positive outlook mirrors that on Cosan, which in turn mirrors that on our sovereign credit

...- We revised the outlook on Rumo's parent, Cosan S.A., to positive from stable and affirmed the '##-' global scale rating. - We expect Rumo to maintain solid operating performance amid record crops for both soybeans and corn, increasing cargo volumes with EBITDA margin close to 52% in 2023, given high tariff adjustments, and debt to EBITDA around 2.5x in the next three years. - We revised the outlook on Rumo to positive from stable and affirmed the '##-' long-term global scale rating, mirroring the action on the parent. - We also affirmed our long-term national scale rating on Rumo at 'brAAA', as well as the issue ratings. - The positive outlook mirrors that on Cosan, which in turn mirrors that on our sovereign credit rating on Brazil....

Research Update