Moody's rates MercadoLibre, notes Ba1

Moody’s Investors Service said it assigned a Ba1 corporate family rating to MercadoLibre, Inc. and a Ba1 rating to its proposed senior unsecured notes with maturities of five to 10 years and a principal amount of around $1 billion.

“MercadoLibre’s Ba1 ratings are one notch above Brazil’s government bond rating of Ba2, which is granted only on an exceptional basis. The company has solid liquidity and broad presence and competitive position in other countries in the region, which allows financial flexibility to sustain economic downturns,” the agency said in a press release.

Proceeds will be used to refinance debt and for general corporate purposes, including green projects and/or eligible social projects.

The outlook is stable. The outlook incorporates an expectation the company will maintain EBITDA margins at healthy levels, which in turn will aid the company’s deleveraging process and support its cash generation ability, Moody’s said.

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