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Fitch: BTG Pactual Exit is Neutral for Rede D'Or's RatingsFitch Ratings believes that the impact of the change in the shareholding structure of Rede D'Or Sao Luiz S.A. (Rede D'Or) will be neutral to the company's credit quality. Today, BANCO BTG PACTUAL S.A. and BTG PACTUAL PARTICIPATIONS, LTD. (together BTG Pactual Group) announced that it sold its 11.9% ownership interest in Rede D'Or to GIC Pte. Ltd. (Singapore's sovereign-wealth fund) for approximately BRL2.4 billion. BTG Pactual will no longer have any ownership interest in the company. Rede D'Or's new shareholder structure will comprise the Moll family - the hospital group founder that will continue to control the company with a 59.3% interest, GIC with a 30.5% stake, and Carlyle Group, which will maintain its 8.3% interest. Fitch currently rates Rede D'Or 'BB+'/'AA(bra)', Stable Outlook. Fitch does not expect Rede D'Or to change its business or financial strategy as a result of the new shareholder structure. The ratings already incorporate Rede D'Or's ongoing aggressive growth strategy via acquisitions, the growth-oriented nature of its main shareholders, and consolidation trends in the industry. Rede D'Or's ratings reflect its large business scale, strong competitive position in the fragmented hospital industry in Brazil, the defensive nature of its business fundamentals through economic cycles, and its track record of maintaining a solid liquidity positin. Rede D'Or's desire to expand should limit any material deleveraging over the medium term. Fitch forecasts net adjusted debt-to-EBITDAR to be in the range of 2.5x to 3.0x in the next three years. Rede D'Or generated BRL1.6 billion of EBITDAR in the last 12 months (LTM) ended Sept. 30, 2015 with net adjusted debt/EBITDAR of 2.5x, as per Fitch calculations. At the end of the LTM, the company had BRL4.9 billion of debt, of which BRL621 million is due in the short term, and BRL991 million of cash and marketable securities. Additional information is available at www.fitchratings.com. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. View source version on businesswire.com: http://www.businesswire.com/news/home/20151202006200/en/ |
