ARC Ratings, S.A. (ARC Ratings) affirms the “BBB-“ rating assigned to the medium and long-term financial commitments, with positive outlook, and “A-3”rating assigned to the short term financial commitments of Grupo Visabeira, S.A.. This rating action is based on the Group’s increasing capacity to generate funds, on its proven resilience from an unfavourable foreign exchange rate movement impacting its Angolan operations given its greater geographical diversification in European markets. Despite this favourable evolution, and some disinvestment in non-core business, strategical acquisitions of subsidiaries, namely in the British market, and operational investment, lead to some net financial debt increase in 2018 and in the first half of 2019. However, the Group continues to be strongly committed not to increase its net financial debt. Its expectations point to a strengthening of its financial structure and further improvement in its debt coverage ratios from 2019 onwards supported by the increasing cash flow generation, based on significant multi-year contracts with the main operators in the European telecommunications market and the Group proven capacity of execution, and by partnerships in main subsidiaries. ARC Ratings will monitor the Group’s performance and its financial structure.

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