S&P affirms Localiza Rent a Car

Standard & Poor's said it affirmed its BB- local- and foreign-currency corporate credit rating on Localiza Rent a Car SA.

The outlook is positive.

S&P said that the ratings on Localiza reflect the company's somewhat more aggressive recent growth strategy.

The ratings also reflect Localiza's exposure to volatile daily car rental demand in Brazil, which bears a strong correlation with the country's level of economic activity, the agency noted, adding that these risks are partially offset by the company's dominant position in its home market of Brazil, its strong brand name, its expertise in weathering volatility and the liquidity of its assets.

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