Fitch rates LLX notes BBB+(bra)

Fitch Ratings said it assigned a BBB+(bra) national rating to LLX Acu Operacoes Portuarias SA's R$750 million of debentures due 2027. The outlook is stable.

The agency said Brazil has been facing increasing demand for new port infrastructure due to the continued growth of the gross domestic product and the bottlenecks in the existing ports. In view of its geographic location, size and adequate intermodal capacity, in addition to easy access from the countryside, Fitch believes that LLX Acu's Porto do ACU project should be able to provide assistance to the operations of the companies of Group EBX and efficiently meet local demand.

Fitch noted that being in the initial stages of the construction process represents a risk in terms of the impact that any eventual cost overruns and construction delays may have on the financial profile of the project. Nevertheless, the rating incorporates the fact that LLX Acu has signed most of its construction contracts at fixed prices, with a 10% contingency in the capital budget, the agency said.

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