S&P rates LPG International notes BB+

Standard & Poor's said it assigned its BB+ senior unsecured debt rating to the new $250 million 10-year notes issuance by LPG International Inc., a subsidiary of Ultrapar Participações SA, and affirmed the company's BB+ long-term corporate credit ratings.

The outlook is stable.

The ratings reflect the company's exposure to volatile petrochemical prices, the dependency of liquefied petroleum gas demand on income and population growth at its home market of Brazil and strong competition in liquefied petroleum gas distribution, the agency said.

These negative factors are offset by Ultrapar's moderate financial policies, which are demonstrated by its strong liquidity and low financial leverage, adequate business diversification in two low-correlated industries with favorable long-term fundamentals and favorable market positions in both of those businesses, the agency said.

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