Moody’s changes Inmobiliaria Colonial to negative

Moody's Investors Service said it changed the outlook on the long-term issuer rating on Inmobiliaria Colonial SA to negative from stable and affirmed its Baa2 issuer rating.

The actions follow Colonial's proposed tender offer for the shares of Axiare SA (unrated) it does not already own.

"Today's outlook change to negative reflects our view that the leverage of Colonial pro-forma for the acquisition of Axiare, if successful, could increase towards the upper end of our expectations for the Baa2 rating," Roberto Pozzi, Moody's vice president, senior credit officer and lead analyst on Colonial, said in a news release.

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