Moody's alters Ultrapar view to stable

Moody's Investors Service said it changed Ultrapar Participacoes SA's outlook to stable from negative and affirmed its Ba1 corporate family rating and the Ba1 rating on the backed senior unsecured notes issued by Ultrapar International SA, guaranteed by Ipiranga Produtos de Petroleo SA and Ultrapar.

“The change in the outlook to stable reflects an improvement in Ultrapar's capital structure following a reduction in its debt balance and the expectation of improving EBITDA generation in 2022 and 2023. By year-end 2022 Moody's expects Ultrapar to reach a gross leverage of 3.3x compared to 3.4x in the LTM ended June 2022. Moody's believes the changes in management, undertaken since late 2021, will allow Ipiranga to improve its competitive position and return to a higher level of profitability,” the agency said in a press release.

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