Moody's rates Editora Abril Ba3

Moody's Investors Service said it assigned Ba3 and A3.br local-currency and Brazil national scale corporate family ratings to Editora Abril SA.

The outlook is stable.

"The ratings are supported by Editora Abril's dominant position within the Brazilian magazine market, its valuable brand portfolio, the company's and the parent's (Abril SA) consistently improving leverage and coverage ratios over the past three years, as well as the benefits of more sustainable growth in Brazil's advertising market, which has been driven by a consistent expansion of Brazilian consumer real income," Moody's analyst Soummo Mukherjee said in a written statement.

Ratings also reflect the significant contribution to revenue of cyclical advertising, seasonality in Editora Abril's business and the lack of transparency in the company's financial disclosures, as well as its complex ownership structure, the agency noted.

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