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[SITUATION] · [QUIET] · [BUSINESS]

2 clusters · 7 sources · 8 days · First seen · Last updated

Rumo financial and credit outlook

Overview

JPMorgan adjusted its target price for the Brazilian railway operator Rumo from R$ 20 to R$ 19.50, maintaining a neutral recommendation. The bank noted that a potential sale of a 20% to 30% stake by parent company Cosan could serve as a positive catalyst, with proposals expected in September.

Following these developments, Fitch Ratings affirmed Rumo’s long-term foreign and local currency ratings at ‘BB+’ and ‘AAA(bra)’, respectively. While Fitch removed a previous negative watch, it assigned a negative outlook to the company’s corporate ratings. This outlook is attributed to Rumo’s credit profile being capped by Cosan’s ‘BB-’ rating. Despite this, Rumo maintains a strong business position with robust operational cash flow and high liquidity, with leverage projected to remain limited through 2028.

Entities

Cosan · Rumo · Shell · Fitch Ratings · Ágora Investimentos

Timeline

  1. 17 days ago

    [BUSINESS] 2 sources
    Rumo credit rating affirmed by Fitch with negative outlook

    Fitch Ratings affirmed Rumo’s ‘BB+’ rating and removed its negative watch, but assigned a negative outlook due to the credit constraints of its parent company, Cosan.

  2. 25 days ago

    [BUSINESS] 5 sources
    JPMorgan adjusts Rumo target price amid Cosan stake sale potential

    JPMorgan lowered Rumo's target price to R$ 19.50 but noted Cosan's potential stake sale as a catalyst. Meanwhile, Ágora Investimentos issued various day trade buy and sell recommendations.

Sources

brasilemfolhas.com.br · guiadoinvestidor.com.br · infomoney.com.br · mobile.valor.com.br · moneytimes.com.br · neofeed.com.br · riotimesonline.com