'AAA(bra)' Long-Term National Rating (Fitch), RD Saúde's Debentures Issuance 09

Fitch Ratings today assigned the 'AAA(bra)' Long-Term National Rating to the proposed ninth issuance of unsecured debentures by RD Saúde, in a single series, in the amount of up to BRL600 million and with final maturity in 2031. The resources will be used to reinforce cash and working capital. Fitch already classifies RD Saúde with the National Long-Term Rating ‘AAA(bra)’; Stable Outlook.

RD Saúde's rating reflects its robust business and financial profiles, with resilient operational cash generation, conservative capital structure and adequate liquidity. The classification incorporates RD Saúde's leadership and competitive positioning in the defensive and fragmented pharmaceutical retail industry in Brazil, its strong and consolidated brands, as well as the capillarity of its revenues nationwide, which mitigate the intense and growing competition in the sector. The analysis also considers RD Saúde's proven financial flexibility to finance the expected negative free cash flows (FCFs) projected for the coming years, resulting from its expansion strategy.

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Click here for Fitch's full report, also hosted on this website here.

(This is a free English translation of the original report by Fitch in Portuguese).

São Paulo, April 23, 2024.
RAIA DROGASIL S.A.