Fitch upgrades Ouro Verde

Fitch Ratings said it upgraded Ouro Verde Locacao e Servico SA’s long-term foreign and local-currency issuer default ratings to BB- from B and its long-term national scale rating to A+(bra) from BBB(bra).

“The upgrade reflects Ouro Verde’s better business profile and operating performance than previously anticipated after a successful corporate reorganization in late 2019, and solid financial performance during the coronavirus pandemic. Fitch expects higher margins and a healthier client portfolio in 2020 will continue to improve in the following years,” Fitch said in a press release.

Fitch said it forecasts, the compound annual growth rate for total fleet and net revenue will be 12% and 14%, respectively, during the 2020-2023 period. For 2020, Fitch sees total revenue at R$773 million and a total fleet of 22,400 vehicles at year-end, reaching R$1.1 billion and 31,000 vehicles in 2023, respectively.

The outlook is stable.

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