Moody's rates AB Concessoes Ba3

Moody's Investors Service said it assigned a global scale corporate family rating of Ba3 and Brazilian national scale of A3.br to AB Concessoes SA.

The agency also said it assigned Ba3 and A3.br issuer ratings to Rodovias das Colinas SA and to Triangulo do Sol Auto-Estradas SA, two operating companies of AB Concessoes.

The outlook is stable.

AB Concessoes is one of the five largest toll road operators in Brazil, Moody's said.

AB Concessoes operates through an overall centralized cash management structure with some cross default provisions across the group, the agency said.

The ratings reflect the company's overall stable and strong cash flows as they are mature toll roads with relative low capital expenditure needs and leverage, Moody's said.

The concessionaires have a long track record of traffic performance, serving areas that are economically diversified but with more exposure to agribusiness, the agency said.

The ratings are tempered by the traffic profile, which is concentrated on heavy vehicles that are more volatile and highly correlated with GDP performance and Brazil's sovereign rating, Moody's said.

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