S&P affirms Invepar

S&P said it affirmed its CCC+ global scale and brBB- national scale issuer credit ratings on Invepar and on its subsidiaries.

S&P also removed the ratings from CreditWatch with negative implications.

The outlook is negative.

“The rating actions reflect our view that short-term liquidity pressures have diminished after Invepar paid the R$850 million debt maturity in early April, with part of the proceeds from the fifth debentures issuance, and the group obtained a waiver from holders of the R$1 billion debentures that the subsidiary, Concessionaria Auto Raposo Tavares SA (CART; brBB-/negative/--), issued,” S&P said in a news release.

“Nevertheless, we still view Invepar's capital structure as unsustainable, because it continues to depend on fresh equity, asset sales, or cash upstreams from its subsidiaries, all of which complement the dividend streams to cover debt service costs at the holding level. In addition, the group is still exposed to default risk if Invepar is required to make unforeseen payments because of cross-default clauses.”

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