S&P cuts Invepar

S&P said it lowered its ratings for Investimentos e Participacoes em Infraestrutura SA – Invepar to CCC- from CCC and its national scale ratings brCCC- from brB-. The agency also downgraded the issue-level ratings on Invepar's third and fifth debentures to brC from brCCC but kept the recovery rating of 6 unchanged. Additionally, S&P placed the ratings on CreditWatch with negative implications.

The agency noted that the creditor of one of Invepar’s subsidiary Linha Amarela SA's (Lamsa) second debentures refused to grant another waiver, which triggered payment acceleration.

“Although the debt was early amortized with Lamsa's own cash position, the event triggered a cross-default clause of Invepar's debentures, for which the group received an eight-day waiver until June 1, 2023.

“Although we believe creditors have incentives not to accelerate the payment of Invepar's debentures, given ongoing negotiations over its debt restructuring, this is another event outside of Invepar's control that weighs on its capacity to repay its debt. The group continues to depend on favorable events, including the successful bidding for the concession of BR-040 S.A. (Via 040) and a favorable conclusion of Lamsa's legal dispute with the city of Rio de Janeiro, in order to address significant maturities of Via 040's debt (October 2023) and that of Invepar (August 2024). These factors significantly increase the risks of a liquidity crunch over the next few months,” S&P said in a statement.

The negative watch indicates another downgrade is possible, the agency said.

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