Brazil-based railroad operator Rumo has successfully completed its capital increase of R$2.6 billion. We expect the company's financial metrics to improve after the company uses that capital to prepay more expensive debt, reducing interest expenses and increasing cash generation. We also expect Rumo to continue improving its operating performance through the execution of its capex plan in order to increase capacity and remove bottlenecks to become a more efficient operator over the next years. We have raised Rumo's stand-alone credit profile (SACP) to 'bb-' from 'b+'. We have affirmed our 'BB-' ratings on Rumo and on its senior unsecured notes. We have also revised our outlook to stable from negative to reflect our expectations that lower debt and stronger cash
