Fitch rates BR Malls notes AAA(bra)

Fitch Ratings said it assigned a rating of AAA(bra) to BR Malls Participacoes SA's proposed debentures in the expected amount of around R$500 million.

The proceeds will be used to refinance existing debt and for general corporate purposes, Fitch said.

The company has a long-term local-currency issuer default rating of BBB-, long-term foreign-currency issuer default rating of BB and national long-term rating of AAA (bra).

The outlook is stable.

The ratings are supported by its strong business model, which has been tested in scenarios of deep economic recession, Fitch said.

BR Malls is the largest Brazilian shopping mall operator in terms of own gross leasable area, the agency said, and has a proven track record in the development and management of shopping malls in the country.

The stable outlook reflects an expectation that the company will maintain a solid capital structure reflected in a net leverage of about 2.5x through 2020, Fitch said.

The agency said it believes BR Malls is committed to preserving more conservative leverage ratios, evidenced by the company's proactive measures to reduce debt, eliminate foreign-currency risk and focus on organic growth and efficiencies.

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