Fitch downgrades Hidrovias on rising debt

Fitch downgrades Hidrovias on rising debt

Credit Ratings Fitch Ratings Downgrade Debt Brazil

Fitch Ratings has downgraded Brazilian waterways logistics company Hidrovias do Brasil to BB- from BB on higher-than-expected debt levels in the medium term. "Even incorporating recent operating cash flow improvements, Fitch forecasts net leverage of 4.7x and 4.2x during 2022 and 2023, respectively," the rating agency said in a report on Thursday, adding that Hidrovias' debt levels peaked at seven times EBITDA in 2021. In addition, limited financial flexibility and looming contract renegotiation

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