Moody’s rates B3 debentures

Moody’s Investors Service said it assigned a Ba1 global scale and Aaa.br Brazilian national scale ratings to B3 SA – Brasil, Bolsa, Balcao’s proposed local-currency 10-year debentures. The debentures will be sold in Brazilian reals with a target issue amount of R$205 million.

“B3 S.A. – Brasil, Bolsa, Balcao’s (B3) global scale and national scale unsecured debenture ratings of Ba1 and Aaa.br respectively stem from B3’s long term senior unsecured and issuer ratings of Ba1. B3’s long term senior unsecured and issuer ratings incorporate the benefits to creditors from its increasing earnings, high pretax margins and cash flow generation, which will remain strong over the next 12 -18 months,” Moody’s said in a press release.

The rating assessment also considers B3’s rising but manageable leverage and increased dividend payout targets, which will be maintained in 2020. “B3’s ratings are positioned one notch above Brazil’s Ba2 sovereign rating, reflecting B3’s dominant market position, diverse revenue base and resilient financial performance through Brazil`s last recession, subsequent tepid economic recovery and in 2020 during the pandemic,” the agency said.

Proceeds will be used for reimbursement of expenses and costs, construction and or refurbishment of offices in the city of Sao Paulo.

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