S&P puts JSL on watch

S&P said it placed JSL SA’s BB- global scale and brAA+ national scale issuer credit and brAA+ issue-level ratings on CreditWatch with negative implications.

The placement follows JSL’s detailed announcement on its planned reorganization, S&P said.

“The spin-off of its logistics and cargo transportation business should result in a subsidiary with a reduced scope and higher leverage than that of the consolidated group. As a result, we will likely lower our issuer credit rating on JSL by one notch on the global scale and up to two notches on the national scale, if the reorganization is approved,” S&P said in a press release.

“We believe the new subsidiary would present debt to EBITDA around 4.5x and funds from operations (FFO) to debt close to 10% in 2020. In line with the new issuer credit rating, we would also lower our rating on JSL's eighth debentures issuance, which would remain on its balance sheet. Therefore, we placed our JSL ratings on CreditWatch negative,” the agency said. The company would become a unit of Simpar SA

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