By Brazil Stock Guide – Moody’s Local has reaffirmed Ultrapar Participações SA’s (UGPA3.SA) national scale rating at AAA.br, with a stable outlook. The agency cited the company’s robust business profile, strong liquidity and diversified operations across energy, mobility and logistics.
According to the assessment, Ultrapar benefits from a resilient cash flow, healthy profitability and solid credit metrics. Analysts also highlighted the company’s prudent financial policy, flexible market access and proven ability to raise capital when needed.
While reaffirming the rating, Moody’s noted structural risks, including reliance on key suppliers of raw materials, execution challenges in mergers and acquisitions, and concentration of cash generation in the fuel distribution business.
The agency pointed to Ultrapar’s increased stake in Hidrovias do Brasil SA (HBSA3.SA), now at 55%, as a positive diversification step. The acquisition was financed mostly through operating cash flow, which limited its impact on leverage metrics. However, Moody’s warned that the logistics unit faces margin volatility due to seasonality and weather-related disruptions.
Moody’s concluded that Ultrapar’s liquidity strength and financial flexibility remain key factors supporting its AAA.br rating and stable outlook.