Moody's to review CCR, EcoRodovias ratings
Amid a probe into alleged wrongdoing by highway concessionaires, Moody's put the rating of two Brazilian infrastructure companies under review for potential downgrades.
The rating agency will review infrastructure group CCR and of infrastructure and logistics company EcoRodovias Infraestrutura e Logística, as local subsidiaries of the companies are under investigation.
Last week, federal police made 19 arrests in connection with an alleged corruption scheme involving six Anel de Integração highway concessionaries in Paraná state.
The concession comprises 2,500km of highways and 27 toll plazas. Divided into six lots and tendered in 1997, the winning companies were Econorte, Viapar, Ecocataratas, Caminhos do Paraná, CCR Rodonorte and Ecovia, which is owned by EcoRodovias.
Prosecutors are investigating an alleged scheme operating since 1999 involving the six concessionaires and organized by highway concessions association ABCR. Companies allegedly paid bribes of 35mn reais (US$8.57mn) to officials in Paraná's highways department DER-PR to obtain favorable contact conditions or amendments to the concessions.
"Moody's views that these events could negatively affect the execution of the company's growth strategy in the near term. The investigations can also affect the company's reputation and result in heightened refinancing risks and/or fines, of which the magnitude is uncertain at this point," the rating agency said about CCR.
Regarding EcoRodovias, Moody's said the investigation could negatively affect the company's growth strategy in the near term.
"The investigations affect the company's reputation and can result in heightened refinancing risks and substantial fines," Moody's said.
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