Moody's gives Localiza debentures Ba1, Aa2.br

Moody's has assigned a Ba1 local currency and a Aa2.br Brazil national-scale rating to Localiza Rent a Car SA's Rs. 300 million in senior debentures due in 2012.

At the same time, Moody's said it assigned a Ba1/Aa2.br corporate family rating and affirmed Localiza's senior debentures due in 2014 at the same level.

The outlook is stable.

The net proceeds of the issuance will be used for fleet expansion, working capital needs and to repay short-term senior unsecured bank debt so that leverage, as measured by total debt to EBITDA is not expected to materially increase by the end of the year, the agency noted.

"The Ba1 corporate family rating recognizes, among other factors, Localiza's leading market position and strong brand in the Brazilian car rental market, the benefits of its integrated business platform and the liquidity of its assets," said Moody's vice-president senior analyst Soummo Mukherjee.

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