S&P Upgrades Mills to brAA, Outlook Stable

Why Did S&P Upgrade Mills?

S&P National Ratings upgraded Mills from "brAA-" to "brAA" based on the company's expected ability to maintain low leverage and robust profitability. Analysts Victor Soriani and Fabiana Gobbi highlighted that long-term contracts bring greater revenue predictability, reducing financial risk.

Which Segments Are Driving Growth?

Mills operates in the equipment rental market, and two segments are standing out: yellow-line machinery and forklifts. Together, these already account for approximately 35% of the company's net revenue and cash generation, and fleet expansion in both areas is reinforcing the company's structural performance.

How Will Mills Fund Its Investments?

Projected operational cash generation for the next two years stands at approximately R$ 700 million. This strong cash flow means Mills can finance the majority of its planned investments without needing to issue significant new debt — a crucial advantage in Brazil's current high-interest-rate environment.

What About the Loxam Acquisition?

French multinational Loxam recently announced it would acquire Mills. S&P made clear that the credit upgrade reflects Mills' own improved financial profile exclusively, and does not factor in any potential support or impact from the Loxam deal. The outlook has been revised from positive to stable.