Moody's: Fleury notes Ba1

Moody's Investors Service said it assigned a Ba1 corporate family rating to Fleury and Ba1/ Aa1.br ratings to its proposed Rs. 450 million senior debentures.

The outlook is stable.

Proceeds will be used to fund future acquisitions and for capital expenditures.

"The assigned ratings are supported by Fleury's strong and well recognized brand, positive medium-term prospects for the Brazilian health care industry and by the company's overall good financial metrics," Moody's analyst Marianna Waltz said in a statement.

Ratings also incorporate the fact that Fleury's 26 acquisitions made between 2002 and 2011 brought diversification in terms of branding, consumer's profile and geographic footprint, the agency said.

The Ba1 rating also reflects favorable medium-term prospects for the Brazilian health care industry, the agency noted.

Offsetting some of the strengths is Fleury's relatively small size compared to global peers, based on consolidated net revenues as well as limited cash flow generation, the agency said.

The company's adjusted debt to EBITDA ratio was of 1.6x.

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