Fitch: Valid notes AA-(bra)

Fitch Ratings said it assigned foreign- and local-currency long-term issuer default ratings of BB- to Valid SA (Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao), along with an AA-(bra) long-term national scale rating.

The outlook is stable.

Fitch also said it assigned a long-term national scale rating of AA-(bra) to Valid’s senior unsecured debentures in the amount of between R$150 million to R$200 million due 2019.

The proceeds are for short-term debt refinancing, the agency said.

The ratings consider the favorable revenue and cash flow diversification in terms of geographic footprint, services and clients, Fitch said.

The ratings also reflect the company’s position as one of the largest credit-card producers in Brazil and as a global supplier of SIM cards, the agency said.

The ratings take into account the company’s track record of financial discipline supported by adequate liquidity, elongated debt-maturity schedule and low leverage, Fitch added.

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