Moody's rates ABnote bonds Aa3.br

Moody's Investors Service said it assigned an Aa3.br Brazil national scale rating and a Ba2 local-currency rating to the R$165 million senior unsecured debentures due 2013 to be issued by American Banknote SA (ABnote) in the local market.

The outlook is stable.

Proceeds will be used to finance the acquisition of Interprint SA, one of ABnote's largest competitors.

Moody's said the Ba2 rating reflects ABnote's leading market position in the Brazilian plastic cards and identification systems businesses, its low leverage and strong liquidity, long-term client relationships, conservative management and recognized expertise in secured printing, the agency said.

The rating is constrained by the company's relatively small size, the exposure of its revenue to a few large clients and the risks associated with the development of new technologies, Moody's said.

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