S&P raises Movida

S&P said it raised its global scale issuer credit and issue-level ratings on Movida Participacoes SA to BB- from B+ and national scale ratings to brAA+ from brAA. The 3 recovery rating (65%) is unchanged.

Shareholders approved the incorporation of CS Participacoes boosting the share of the fleet management segment in Movida's portfolio, providing more stable and predictable cash flows going forward, the agency said.

“In addition, Movida has been expanding significantly in the past year, benefiting from high occupancy rates in the rent-a-car (RaC) segment, rising demand in the fleet management segment, and increasing prices for used cars sales, lifting profitability across all of the company's business divisions,” S&P said.

The outlook is stable.

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