S&P assigns 3 recovery to Localiza unsecureds

S&P said it affirmed the BB+ global scale and brAA+ national scale corporate credit ratings on Localiza Rent-a-Car SA.

The agency also said it affirmed the brAA+ rating on Localiza's senior unsecured debentures and removed ratings from CreditWatch with developing implications, where they were placed in February.

The outlook remains negative.

S&P also said it assigned a 3 recovery rating on Localiza's senior unsecured debt, which indicates 70% to 90% expected default recovery.

The rating reflects Localiza's solid operating performance and fairly stable credit metrics despite Brazil's recession, the agency said.

The company's market leadership, large scale and nationwide footprint in the Brazilian market will continue to support Localiza's competitive advantages, S&P said.

The agency said it continues to limit Localiza's ratings to one notch above that of Brazil’s ratings given its tight correlation with economic activity, consumer purchasing power, inflation and credit availability.

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