Moody’s might cut Ecorodovias Concessoes

Moody's Investors Service said it placed the Ba2 global scale and Aa3.br national scale corporate family ratings and Ba3 global scale and A2.br national scale senior unsecured ratings of Ecorodovias Concessoes e Servicos SA under review for downgrade.

The agency said the actions relate to the federal investigations conducted by Brazil's federal prosecution service in conjunction with the federal police, which resulted in the arrest of two senior employees of the company's toll road subsidiaries and the search and seizure of documents.

The investigations relate to allegations of potential briberies to government employees in return for favored contractual conditions and/or amendments related to toll road concessions in the State of Parana.

“The investigations affect the company's reputation and can result in heightened refinancing risks and substantial fines,” Moody’s said in a news release.

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