S&P moves Movida view to stable

S&P said it revised its outlook for Movida Participacoes SA to stable from positive and affirmed its ratings, including its brAA+ senior unsecured ratings. The 3 (65%) recovery rating on its notes is unchanged.

“For the next few years, we expect Movida to finance most of its capex with an existing cash position of R$5.5 billion, as of September 2022, and operating cash generation of about R$1 billion in 2023 and R$2 billion in 2024. Therefore, we forecast stable debt levels in the next few years,” S&P said in a press release.

The stable outlook also reflects the forecast that credit metrics will remain weak in 2023 but start to improve in 2024.

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