Rumo credit rating affirmed by Fitch with negative outlook

Fitch Ratings has affirmed the long-term foreign and local currency ratings for Rumo at ‘BB+’ and ‘AAA(bra)’, respectively. While the agency removed the negative watch previously placed on the Brazilian railway operator, it assigned a negative outlook to the company’s corporate ratings.

The negative outlook is a direct result of Fitch’s parent-and-subsidiary methodology, as Rumo’s credit profile is capped by its parent company, Cosan, which holds a ‘BB-’ rating. Although Cosan recently had its own negative watch lifted following asset sales and debt reduction, its financial standing continues to influence Rumo’s rating.

Independently, Rumo maintains a strong business position as a leading Brazilian railway operator, characterized by robust operational cash flow and high liquidity. Fitch projects that Rumo’s leverage, measured by the net debt to EBITDA ratio, will remain limited to approximately three times between 2026 and 2028, supported by scale gains from ongoing investments.