Fitch places Entrevias debs on watch

Fitch Ratings said it placed Entrevias Concessionaria de Rodovias SA's BB/AA(bra) rated R$1 billion second debentures issuance due in 2030 on rating watch negative.

“The rating watch negative reflects the grantor's delay in signing the amendment to rebalance the prohibition to charge lifted axles of heavy vehicles following the Brazilian truckers strike in May 2018. If the rebalancing is not granted in 2020, Entrevias' liquidity will be lower than expected in Fitch cases, leading the projected LLCR to no longer be commensurate with current ratings,” Fitch said in a press release.

Fitch said it will resolve the negative watch once the rebalance is granted and its conditions are known. If not granted in 2020 or granted in 2020 but under worse terms than those considered in Fitch's cases, the ratings could be downgraded.

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