S&P acts on Localiza, JSL

S&P said it affirmed the ratings on Localiza Rent a Car SA, JSL SA and changed their outlooks.

The agency changed Localiza’s outlook to stable and JSL’s to negative.

“The stable outlook reflects our view that Localiza’s competitive advantages in the sector and comfortable credit metrics will help it overcome the expected weaker operating cash flows caused by the mobility restrictions and economic downturn in Brazil,” S&P said in a press release.

In explaining the negative outlook on JSL S&P said, “The negative outlook reflects our view that JSL’s cash flow generation, and consequently its leverage metrics, could be more pressured in the medium term if mobility restrictions are exacerbated in Brazil in the next few months or if the economic contraction lasts for longer than predicted.”

S&P also removed their ratings from the CreditWatch listing with negative implications.

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