S&P alters outlook on four Brazilian companies to stable

S&P said it revised the outlook on four Brazilian car rental and transportation companies to stable from negative and affirmed their ratings.

The companies are Simpar SA, Movida Participacoes SA, Companhia de Locacao das Americas SA (Unidas), and Vix Logistica SA.

“The stable outlook reflects our expectation that the faster-than-expected improvement in the demand for car rentals and transportation services in the second half of 2020, combined with cash flow stability from corporate leasing contracts, will compensate for the sharp drop in the second-quarter cash flows stemming from lockdowns. We now expect companies to maintain credit metrics in line with current ratings in 2020 and 2021 as economic conditions improve and risks of movement restrictions diminish,” S&P said in a press release.

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