Moody's rates Ecopistas notes Ba1

Moody's Investors Service said it assigned for the first time a Ba1 rating on the global scale and Aa2.br rating on the Brazilian national scale to the R$350 million senior secured debentures to be issued by Concessionaria das Rodovias Ayrton Senna e Carvalho Pinto SA (Ecopistas) and guaranteed by Ecorodovias Concessoes e Servicos SA.

The agency also said it assigned Ecopistas issuer ratings of Ba2 on the global scale and Aa3.br on the Brazilian national scale.

The outlook is stable.

The debentures will be issued in four series of $R87.5 million each, with tenors ranging from 135 to 144 months that will begin to amortize annually 15 to 24 months after the issue date, Moody's said.

The debentures will be secured by the pledge of the concessionaire's stock, future receivables of its toll revenues and indemnification rights over the concession assets, the agency said.

The proceeds will be used to refinance about R$371 million in promissory notes due in June 2011.

The ratings reflect the important service that Ecopistas' road system provides connecting the metropolitan area of Sao Paulo and the industrial cities of the Paraiba Valley and the stable regulatory environment for toll road concessions in the state of Sao Paulo, Moody's said.

The ratings are constrained by the limited track record of this recently awarded concession, its high level of indebtedness and high capital expenditure over the next five years, the agency said.

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