Moody’s applies Baa2 IR to Prosegur

Moody's Investors Service said it assigned a Baa2 issuer rating to Prosegur Compania de Seguridad, SA.

The outlook is stable.

Moody’s said the Baa2 rating reflects: (a) Prosegur’s scale and positioning as one of the world's leading providers of private security solutions; (b) a strategy oriented toward business process outsourcing, allowing the company to reap high profit-margins in an environment where the industry currently faces a number of headwinds; and (c) the solid credit metrics supported by a clear financial policy, whereby family-ownership provides a certain comfort as regards to future strategy.

However, the rating also takes into account: (a) The company's high exposure to Latin America and, in particular, Brazil and the Argentina region (Argentina, Paraguay, Uruguay), while upstreaming cash from Argentina is constrained; (b) the capital intensity of the business; and (c) some degree of event risk as Prosegur will continue participating in the consolidation of the industry.

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