S&P rates Simpar Europe notes BB-

S&P said it assigned its BB- issue-level rating and recovery rating of 4 to Simpar Europe’s proposed benchmark-size senior unsecured notes.

“The rating reflects the credit quality of the transportation and logistics services group, Simpar SA (Simpar; BB-/stable/--), which unconditionally and irrevocably guarantees the notes,” S&P said in a press release.

The company will use proceeds to repurchase its 2024 bond, issued by the former JSL Europe. “Therefore, we don’t expect Simpar’s debt to increase following this transaction,” S&P said.

The notes’ terms specify Simpar must meet its sustainability performance target of reducing greenhouse gas emissions intensity to 124.04 tCO2e/million R$ net revenues or less by the end of 2025 (a reduction of 7.8% from the 2019 level). If Simpar fails to reach this target, the interest rate will increase by 25 basis points from January 2026 until maturity, the agency noted.

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