Senior Credit Analyst - Emerging Markets, EM Spreads

Leandro Gubler

EM Spreads is an independent credit research service specializing in Emerging Markets, primarily focusing on Latin American issuers.

Senior Credit Analyst - Emerging Markets

Minerva: Balancing an Interesting Credit Story with Acquisition Risks

EM Spreads

Credit

<ul>
<li>We expect the company to encounter challenges in free cash flow generation, which will pressure credit metrics and hinder post-acquisition deleveraging.</li>
<li>The 2033 notes are the only ones within Minerva’s capital structure that do not trade tight to the LatAm BB and EM BB curves. </li>
<li>However, we believe a better entry point for these notes may emerge based on our expectation of a weakening credit profile in the short term.</li>
</ul>


We expect the company to encounter challenges in free cash flow generation, which will pressure credit metrics and hinder post-acquisition deleveraging.
The 2033 notes are the only ones within Minerva’s capital structure that do not trade tight to the LatAm BB and EM BB curves. 
However, we believe a better entry point for these notes may emerge based on our expectation of a weakening credit profile in the short term.


Minerva 3Q24: Acquisitions Keep Uncertainty High

Minerva /Brazil

Minerva 3Q24: Acquisitions Keep Uncertainty High