Research Update: Tupy S.A. Ratings Raised To 'BB' From 'BB-' On Likely Higher Cash Flows, Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: Tupy S.A. Ratings Raised To 'BB' From 'BB-' On Likely Higher Cash Flows, Outlook Stable

Research Update: Tupy S.A. Ratings Raised To 'BB' From 'BB-' On Likely Higher Cash Flows, Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: Tupy S.A. Ratings Raised To 'BB' From 'BB-' On Likely Higher Cash Flows, Outlook Stable
Published May 21, 2019
7 pages (2970 words) — Published May 21, 2019
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

We expect Brazil-based auto parts manufacturer Tupy S.A. to generate solid and increasing cash flows from continued revenue growth and some profitability improvements. Therefore, Tupy should reduce leverage even more, with debt to EBITDA approaching 1.5x in the next few years from 2.1x in 2018. As a result, on May 21, 2019, S&P Global Ratings raised its long-term global and national scale issuer credit ratings to 'BB' from 'BB-' and to 'brAAA' from 'brAA+', respectively. We also raised our debt rating to 'BB' from 'BB-'. The outlook is now stable, reflecting our expectation that Tupy will post EBITDA margin of 14%-15% and debt to EBITDA at 1.5x-2.0x in the next few years as it maintains solid operating cash flows. Tupy's

  
Brief Excerpt:

...- We expect Brazil-based auto parts manufacturer Tupy S.A. to generate solid and increasing cash flows from continued revenue growth and some profitability improvements. - Therefore, Tupy should reduce leverage even more, with debt to EBITDA approaching 1.5x in the next few years from 2.1x in 2018. - As a result, on May 21, 2019, S&P Global Ratings raised its long-term global and national scale issuer credit ratings to '##' from '##-' and to 'brAAA' from 'brAA+', respectively. We also raised our debt rating to '##' from '##-'. - The outlook is now stable, reflecting our expectation that Tupy will post EBITDA margin of 14%-15% and debt to EBITDA at 1.5x-2.0x in the next few years as it maintains solid operating cash flows....

  
Report Type:

Research Update

Issuer
Tupy S.A.
GICS
Auto Parts & Equipment (25101010)
Sector
Global Issuers
Country
Brazil
Region
Latin America
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Tupy S.A. Ratings Raised To 'BB' From 'BB-' On Likely Higher Cash Flows, Outlook Stable" May 21, 2019. Alacra Store. May 13, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Tupy-S-A-Ratings-Raised-To-BB-From-BB-On-Likely-Higher-Cash-Flows-Outlook-Stable-2236385>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Tupy S.A. Ratings Raised To 'BB' From 'BB-' On Likely Higher Cash Flows, Outlook Stable May 21, 2019. New York, NY: Alacra Store. Retrieved May 13, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Tupy-S-A-Ratings-Raised-To-BB-From-BB-On-Likely-Higher-Cash-Flows-Outlook-Stable-2236385>
  
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