Moody's assigns Ba3 to Movida, notes

Moody's Ratings said it assigned a Ba3 corporate family rating to Movida Participacoes SA and a Ba3 backed senior unsecured rating to the notes Movida Europe SA plans to sell. Movida Participacoes and Movida Locacao de Veiculos SA will guarantee the notes. The outlook is stable for both entities.

Movida is a subsidiary of Simpar SA, rated Ba3 by Moody’s.

“Movida's Ba3 rating reflect its competitive position as the second largest company in the Brazilian car and fleet rental market. It has a flexible business model, which helps it to weather economic and auto market slowdowns. The company's adequate liquidity, stable operating performance, and Moody's expectation of an adequate leverage over the next 12-18 months also support the rating,” the agency said in a press release.

Most of the proceeds are expected to be used in the refinancing of certain indebtedness, extending the company's maturity profile and reducing its interest costs. Other uses may include general corporate purposes, including capital expenditures.

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