Moody's may upgrade Rota das Bandeiras

Moody's Investors Service said it placed the Ba3 global scale and A3.br national scale corporate family ratings and senior secured ratings of Rota das Bandeiras under review for upgrade.

The outlook also was revised to ratings under review from negative.

The review for upgrade reflects news that the company's parent, Odebrecht Rodovias SA agreed to sell 85% of the company's controlling shares to a vehicle directly owned by Farallon Capital Management LLC in association with Mubadala Investment Co., Moody's said.

Rota's credit profile reflects the medium term liquidity risks in light of its sizable capital investment program of about R$1 billion between 2019 and 2025, the agency said, and a fully amortizing debt structure that matures in 2025 with an outstanding debt balance of about R$2.3 billion.

In 2018, Moody's said it estimates the company generated about R$320 million in funds from operations.

The review will focus on the potential change of control and the plans to address these medium-term obligations, the agency said.

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