Fitch lowers Valid national rating

Fitch Ratings said it affirmed Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA's foreign- and local-currency long-term issuer default ratings at BB-.

The agency also said it downgraded Valid's long-term national scale rating to A+(bra) from AA-(bra).

The outlook is stable.

The downgrades consider the company's higher business volatility than initially expected, which weakened its credit profile within the BB- level, Fitch said.

The volatility came from recent challenging macroeconomic conditions in Brazil and market dynamics that have impaired the demand for the company's services and products, leading to decreasing trend of EBITDA and cash flow from operations since 2015, the agency said.

Valid's issuer default ratings continue to reflect its positive business diversification in terms of services provided and geography, Fitch said, and its credit profile benefits from its sound financial profile.

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