Moody's affirms Independência

Moody's affirmed Independência SA's B2 local-currency corporate family rating and B2 guaranteed senior unsecured rating following news of a capital increase of up to BRL 450 million by Independência's parent company, Independência Participações SA, which will subsequently be transferred to Independência.

The outlook remains stable.

The affirmation is based on Moody's belief that the capital increase will alleviate the company's previously tight liquidity position and bring the company's net debt-to-EBITDA ratio to within 4x, up from 4.86x as of Sept. 30, the agency said.

The ratings could come under pressure if the company's margins were to deteriorate significantly or its liquidity becomes constrained due to the loss of key export markets or increased difficulty to access or roll-over trade finance lines, Moody's said.

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