It is the opinion of ARC Ratings, S.A. (ARC Ratings) that the timely and full payment of Grupo Visabeira, SGPS, S.A. (GRUPO VISABEIRA SGPS)’s financial commitments subject to rating depends on the Group’s generation of cash flows, mainly from its operational activity, the performance of its financial investments, the evolution of interest rates and the capacity and willingness of the Portuguese banking system to accommodate the Group’s financing needs. In so far as, in operational terms, the Group expects a balanced contribution from the national and international markets, its cash flow generation capacity is influenced by the risks incurred in its international business, namely foreign exchange and political risk. In the opinion of ARC Ratings, GRUPO VISABEIRA SGPS shows a fair capacity to meet its financial commitments but it faces circumstances which could lead to an unforeseen deterioration in this capacity. ARC Ratings thus assigns a B rating, with positive outlook, to its short-term financial commitments, and a BB+ rating, with stable outlook, to its medium and long-term financial commitments.

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