S&P rates Movida Europe notes B+

S&P said it assigned its B+ issue rating and 3 recovery rating to Movida Europe SA’s planned senior unsecured sustainability-linked notes.

“The rating reflects the credit quality of Movida Participacoes SA (Movida; B+/stable/--), which will unconditionally and irrevocably guarantee the notes,” S&P said in a press release.

The company will use proceeds for debt refinancing and to fund its fleet’s growth. “In this sense, we don’t expect any major increase in leverage, given that the additional cash flows from the expanded fleet will compensate for the higher debt level,” the agency said.

The notes require Movida to meet its sustainability performance target to reduce greenhouse gas emissions intensity to 45.37 tCO2e/R$ million net revenue or less by the end of 2025 (a reduction of 15% from the 2019 level). If it fails to do so, the notes’ interest rate will increase by 25 basis points from January 2026 until the notes’ maturity, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.