Ecopistas Debenture Gets Ba1 Rating

Moody’s rates Ecopistas’BRL350m senior secured debentures Aa2 on a national scale. The outlook is stable for all ratings. The debentures will be issued in 4 series of BRL87.5m each, with tenors from 135-144 months. The debentures will begin to amortize annually 15-24 months after issue date. The issue is secured by pledge of Ecorodovias Conessoes’ stock. Ecorodovias Conessoes is an intermediary company of Ecorodovias Infraestructura e Logistica, created to consolidate its toll road business. Ecopistas is a subsidiary of Ecorodovias Infraestructura. Issuance could be increased to BRL370m, depending on market conditions. Proceeds will be used to refinance around BRL371m in promissory notes due June 2011. The Aa2 rating is one notch higher than the Ecopistas issuer rating to reflect the guaranty provided by Ecorodovias Concessoes. Embedded in the Ecopistas’ proposed debentures are also covenants designed to limit leverage, such as a maximum net-debt-to-Ebitda ratio of 4.0x, a minimum debt service coverage ratio of 1.2x and a minimum equity capital ration of 20%.