Moody’s lowers, to withdraw CART

Moody's America Latina said it downgraded Concessionaria Auto Raposo Tavares SA’s (CART) corporate family ratings to B2 from B1 on the global scale and to Ba2.br from Baa3.br on the Brazilian national scale.

At the same time, the agency downgraded the ratings assigned to the R$750 million senior secured debentures due in 2024 to B2/Ba2.br from B1/Baa3.br.

The outlook remains negative.

Moody's will withdraw the ratings of CART on the next business day.

“The downgrade reflects CART's deteriorated credit quality resulting from weaker than anticipated tolled traffic performance through June 30 2017, due to the country's economic contraction and increased competition from alternative routes in its the service area,” the agency said in a news release.

“The still large capital investment program for road improvements and expansion through December 2018 and the limited financial flexibility provided by the terms of the existing project finance structure, also weights on the downgrade.”

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