Fitch Keeps Brazil’s Rumo at BB+ With a Negative Outlook, and Cosan Is the Reason
BRAZIL · MARKETS Key Facts —What happened: Fitch affirmed Rumo at BB+ on 26 August, removed the negative watch, and set a negative outlook. —The catch: The outlook follows parent company Cosan, rated BB-, which caps Rumo under Fitch’s own rules. —Cosan’s relief: Cosan’s own negative watch was lifted on 21 August after asset sales […] The post Fitch Keeps Brazil’s Rumo at BB+ With a Negative…
On 26 August, Fitch Ratings affirmed Brazil's largest railway operator Rumo's credit rating at BB+ and eliminated the negative outlook previously attached. The agency noted that this decision was influenced by parent company Cosan, which was rated BB-. Fitch's rating was capped by Cosan's own rating due to Fitch's parent-and-subsidiary methodology.
Cosan's negative outlook was lifted on 21 August after implementing asset sales and debt reductions. Rumo reported record first-quarter volumes of 20.2 billion tonne-kilometers, an increase of 25% year-on-year, and an adjusted EBITDA of R$1.75 billion (US$339 million), up 7% year-on-year. The net debt stood at R$16.9 billion (US$3.28 billion), equivalent to 2.1 times EBITDA, with Fitch projecting it to be at most three times EBITDA through 2028.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
