Moody’s ups Tegma, debt to B1

Moody's America Latina said it upgraded Tegma Gestao Logistica SA's corporate family rating to B1 from B2 on the global scale and to Baa2.br from Ba1.br on the national scale.

The agency also upgraded the R$200 million senior unsecured debentures due in 2018 and 2019 to B1/Baa2.br from B2/Ba1.br.

The outlook is stable.

Moody’s said the upgrade reflects primarily Tegma's improved liquidity profile following liability management initiatives carried-out during 2017 and the company's strengthened credit metrics coming from cost-saving initiatives and material debt reduction.

The upgrade also incorporates the marked improvement in automotive production in Brazil in the last year, as well as the agency’s view that the company's enhanced financial flexibility will help it withstand potential future volatility in the Brazilian automotive market without major deterioration in its current credit profile.

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