Fitch rates Viacao Itapemirim notes

Fitch Ratings said it has assigned a B senior secured foreign currency rating to Viacao Itapemirim SA's (VISA) two-year senior secured note issue due 2006. In February 2004, the company placed $19.5 million in senior secured notes and will reopen the issue up to an additional $17.5 million, for a maximum of $37.0 million.

The outlook is stable.

Fitch said the rating reflects VISA's position as one of the leaders in interstate passenger bus transportation in Brazil. The rating also reflects the high barriers to entry within the industry, price competitive advantages in relation to alternative passenger transportation means, satisfactory regulated tariff revisions and improving credit protection measures over the 2001-2003 period.

Other factors considered include VISA's exposure to exchange rate risk due to the generation of local currency denominated revenues in relation to the company's future debt service primarily in U.S. dollars.

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