RPT-Fitch revises LLX Acu Operacoes Portuarias S.A.'s rating watch to evolving
Aug 21 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has revised the Rating Watch for LLX Acu Operacoes Portuarias S.A.'s (LLX Acu) 750 million Brazilian reais debentures to Evolving from Negative.
Key Rating Drivers
The rating action reflects the announcement by LLX Logistica S.A. (LLX), LLX Acu's sole sponsor, that it has entered into a Statement of Commitment with EIG Management Company LLC (EIG) to subscribe new shares issued by the former for BRL$1.3 billion. With the transaction, EIG will become the company's controlling shareholder. Mr. Eike Batista will maintain a significant minority interest in LLX Logistica. The transaction closing is subject to conditions precedent such as the finalization of definitive contracts, regulatory approvals and final due diligence by EIG. LLX reports that the agreement is expected to be finalized in the next two to three months.
The exact rating implications for the rated debt remain undetermined and the Watch period will be used to gather further information. Fitch will resolve the Watch status upon the receipt of information regarding the closing of the transaction and upon a full review of the project's updated business plan and projections. The aforementioned transaction would be seen as a credit positive for the LLX Acu as the equity injection would facilitate the completion of the Port and the conversion of its current short-term debt obligations into long term financings. In the event that this equity contribution does not materialize, this could have negative implications for the issuer and impact its rating given its current liquidity constraints.