Space Money by Lucas de Andrade - 23/01/2024
By Marketing Team
Posted in January 23, 2024
Funds will be used for debt repayment and general corporate purposes.
Last Monday (22), the rating agency Fitch Ratings assigned a long-term rating of ‘BB-‘ to the proposed issuance of senior unsecured green bonds maturing in 2031, to be issued by Ambipar Lux, of Ambipar (AMBP3), which unconditionally and irrevocably guarantees the bonds, along with its subsidiaries Environmental ESG and Ambipar Emergency Response.
The proceeds from the issuance will be used for debt repayment and general corporate purposes.
Currently, Fitch rates Ambipar with long-term foreign and local currency IDRs (Issuer Default Ratings) of ‘BB-‘.
Additionally, the agency rates Ambipar and its subsidiaries (Emergency and Environmental) with a long-term national rating of ‘AA-(bra)’. All corporate ratings have a Stable outlook.
According to Fitch, Ambipar’s credit profile reflects its prominent position in the environmental services sector, with strong growth potential, and the diversification of its revenues in economically more stable countries than Brazil.
In the analysts’ assessment, the company also benefits from its favorable contract renewal history and reasonable protection of its adequate margins, due to contractual cost pass-through mechanisms, which are mostly variable.
The report states that the ratings of Ambipar and its subsidiaries are constrained by its high consolidated gross leverage, with significant cash flow consumption by interest, as well as the absence of a longer track record of the company’s performance.
The stable outlook, finally, reflects Ambipar’s ability to sustain robust liquidity and gradually reduce debt in the medium term, with reduced investments and the absence of significant acquisitions, which should keep gross and net leverage at moderate levels.
