S&P rates IFH Peru notes B+

Standard & Poor's said it assigned a B+ long-term corporate credit rating to IFH Peru Ltd. and a B+ rating to its proposed $100 million adjustable-rate bullet notes due 2019. The series A notes will be denominated and payable in dollars; the series B notes will also be denominated and payable in dollars, but they are also linked to Chilean currency unit Unidad de Fomento.

The outlook is stable.

Proceeds will be used by the company's retail subsidiaries to finance the expansion of their retail stores and provide funding to its retail-related credit card business.

The agency said the ratings reflect IFH's heavy reliance on dividends coming from a small number of subsidiaries, a certain level of currency mismatch resulting from the proposed notes' dollar denomination and the group's relatively aggressive expansion strategy.

In the agency's view, these factors are partially mitigated by the group's good position in Peru's financial system. S&P said this a position rises from the company's stake in Interbank, the fourth-largest Peruvian bank in terms of deposits and IFH Peru's largest subsidiary and cash contributor.

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