Moody’s rates Valid notes Ba2

Moody’s Investors Service said it assigned global-scale Ba2 and Brazilian national scale Aa3.br ratings to the R$62.5 million three-year senior unsecured debentures to be issued by Valid SA.

Valid’s corporate family rating is unchanged at Ba2, along with its existing senior unsecured ratings at Aa3.br.

The outlook is stable.

The issuance is part of Valid’s liability management with the objective of restoring the company’s cash position after the first principal amortization of its R$250 million debentures with final maturity of April 30th, 2018, Moody’s said.

The proposed debentures will extend the company’s debt maturity profile and will not affect its leverage metrics, the agency added.

The ratings are constrained by Valid’s relatively small size in comparison to global peers, execution risks associated with its recent entry in the U.S. market and its reliance on a small group of large clients in banking and telecom, Moody’s said.

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