Fitch lifts Ache Laboratories

Fitch Ratings said it upgraded Ache Laboratorios Farmaceuticos SA's foreign- and local-currency issuer default rating to BBB from BBB- and national scale rating to AAA(bra) from AA+(bra).

The outlook is stable.

The upgrades reflect the strengthening of Ache's business position, along with its operating cash flow and profitability despite increasing competition, Fitch said.

The agency said it expects that Ache will continue to operate under a conservative strategy, seeking to manage competition from global players and the challenges related to the expansion of the generics segment.

The ratings are supported by the company's strong business position in the Brazilian market and its leadership position in the prescription drug segment, Fitch said.

The ratings also consider the company's conservative financial strategy of unleveraged capital structure, complemented with a strong liquidity position, the agency said.

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