This Monday, September 4th, the rating agency Fitch Ratings affirmed ratings for the companies JSL (JSLG3), Movida (MOVI3), Simpar (SIMH3) and Vamos (VAMO3)with a stable outlook.
See the agency's considerations for each below:
JSL (JSLG3)
Fitch Ratings today affirmed the IDRs (Issuer Default Ratings - Long-term Foreign and Local Currency Issuer Default Ratings 'BB' and the National Long-term Rating 'AAA(bra)' of JSL S.A. (JSL).
At the same time, it affirmed the 'AAA(bra)' rating of the company's senior unsecured debentures. The outlook for the corporate ratings is Stable.
Fitch equalizes JSL's ratings with those of the parent company Simpar S.A. (Simpar, IDRs BB/Stable Outlook), given the medium legal incentives and the strong operational and strategic incentives that the holding company has to support the company.
subsidiary, if necessary.
Simpar's BB IDRs reflect the group's large scale, its robust business profile and its strong competitive position in the leasing and logistics sectors in Brazil.
The Simpar group benefits from a diversified portfolio of services and long-term contracts for a significant part of its revenues, as well as a solid and resilient operating performance.
The ratings also incorporate the group's ample financial flexibility and the expectation that the expansion of EBTIDA and the reduction in investments will lead to a gradual and consistent drop in leverage.
Fitch considers that there is little scope for significant investments and acquisitions, as well as for reducing the
expectation of cash generation, without putting pressure on the ratings.
On an individual basis, JSL has a strong business profile, the result of its robust scale, diversified portfolio of services, resilient profitability and leadership in the road logistics and dedicated services segments in Brazil, where it has experienced rapid growth - both organic and through acquisitions.
JSL's consolidated financial leverage should remain moderate, despite the expectation of negative free cash flows (FCFs), as EBITDA generation improves.
The company has ample access to various sources of funding and healthy liquidity, which allows it to properly manage its debt repayment schedule.
Movida (MOVI3)
Fitch Ratings today affirmed Movida Participações S.A.'s (Movida) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) 'BB' and Movida Locações de Veículos S.A.'s (Movida Locação) and Movida's National Long-Term Rating at AAA(bra).
At the same time, the agency affirmed the 'BB' rating of Movida Europe's senior unsecured bond issue and the 'AAA(bra)' rating of Movida and Movida Locação's local market issues.
The outlook for corporate ratings remains stable.
Fitch equalizes the ratings of Movida and Simpar S.A. (Simpar, Long-Term IDRs in Foreign and Local Currencies 'BB'/Stable Outlook), and reflects medium legal incentives and strong operational and strategic incentives.
that the holding company has to support Movida, if necessary.
The ratings of Movida and Movida Locação are also equalized due to Movida's strong incentives to support its subsidiary.
Simpar's ratings reflect the group's large scale, robust business profile and strong competitive position in the Brazilian leasing and logistics sector.
The Simpar group benefits from a diversified portfolio of services and long-term contracts for a significant portion of its revenues, with a solid and resilient operating performance.
The ratings also incorporate the group's ample financial flexibility and the expectation that EBITDA expansion and lower investment levels will lead to a
gradual and consistent reduction in leverage.
Fitch considers that there is limited room for frustration in the expectation of more significant cash generation, investment and acquisitions without putting pressure on the ratings.
On an individual basis, Movida has a solid position in the competitive Brazilian vehicle and fleet rental business, with significant scale and strong operating performance.
Movida's consolidated financial leverage should remain moderate, despite the expectation of negative free cash flows (FCF) after 2023.
The company has proven access to various sources of funding and robust liquidity, which allows it to properly manage its debt repayment schedule.
Simpar (SIMH3)
Fitch Ratings today affirmed Simpar S.A.'s (Simpar) Long-Term Foreign and Local Currency IDRs (Issuer Default Ratings) 'BB' and its Long-Term National Rating at AAA(bra).
At the same time, the agency affirmed the 'BB' rating for Simpar's senior unsecured debt and financial vehicles, as well as the 'AAA(bra)' rating for senior unsecured debt in the local market.
Simpar's ratings reflect the group's large scale, robust business profile and strong competitive position in the Brazilian leasing and logistics sector.
The Simpar group benefits from a diversified portfolio of services and long-term contracts for a significant portion of its revenues, with a solid and resilient operating performance.
The ratings also incorporate the group's broad financial flexibility and the expectation that EBITDA expansion and lower investment levels will lead to a gradual and consistent reduction in leverage.
Fitch considers that there is limited room for frustration in the expectation of cash generation, investment and more significant acquisitions without putting pressure on the ratings.
Let's go (VAMO3)
Fitch Ratings today affirmed the 'AAA(bra)' National Long-Term Rating of Vamos Locação de Caminhões, Máquinas e Equipamentos S.A. (Vamos) and its unsecured debenture issues.
Vamos' rating is equal to that of its parent company, Simpar S.A. (Simpar, Issuer Default Ratings (IDRs) Long-Term Foreign and Local Currency 'BB'/Stable Outlook and National Long-Term Rating 'AAA(bra)'/Stable Outlook), reflects the average legal incentives and the strong operational and strategic incentives that the holding company has to support it, if necessary.
Simpar's ratings reflect the group's large scale, robust business profile and strong competitive position in the Brazilian leasing and logistics sector.
The Simpar group benefits from a diversified portfolio of services and long-term contracts for a significant portion of its revenues, with a solid and resilient operating performance. The ratings also incorporate the group's broad financial flexibility and the expectation that EBITDA expansion and lower investment levels will lead to a gradual and consistent reduction in leverage.
Fitch considers that there is limited room for frustration in the expectation of cash generation, investment and more significant acquisitions without putting pressure on the ratings.
On an individual basis, Vamos has a solid business position in the Brazilian market for leasing fleets of heavy vehicles, machinery and equipment, with significant scale and consistent operating performance.
Vamos' consolidated financial leverage should remain moderate, even with the expectation of negative free cash flow (FCF), benefiting from the recent capital increase and expected business growth.
Link to the article: https://www.spacemoney.com.br/geral/jsl-jslg3-movida-movi3-simpar-simh3-e-vamos-vamo3-fitch/197124/