Vibra Energia S.A. -- Moody's announces completion of a periodic review of ratings of Vibra Energia S.A.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Vibra Energia S.A.Global Credit Research - 31 Jan 2022New York, January 31, 2022 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Vibra Energia S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 24 January 2022 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.Key rating considerations are summarized below.The ratings of Vibra Energia S.A. (formerly Petrobras Distribuidora S.A.) mainly reflect its market position as the largest fuel distributor in Brazil in terms of volumes sold, gas stations network and distribution logistics assets, along with its well-known brand names and adequate credit metrics. The ratings also incorporate the improvements in governance standards following BR's privatization in July 2019 and profitability gains observed with its efficiency plan.Constraining is increasingly competitive fuel distribution market in Brazil. We expect Vibra to maintain aggressive dividend payments, but these should not restrain liquidity nor impede positive to neutral free cash flow generation.This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.The principal methodology used for this review was Retail published in November 2021. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings. 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