Fitch: Iguatemi notes AA+(bra)

Fitch Ratings said it assigned an AA+(bra) national scale rating to Iguatemi Empresa de Shopping Centers SA's proposed local debentures fourth issuance.

The target amount of the proposed issuance is up to R$400 million and composed of two series, one with a minimum amount of R$350 million and the other one with a maximum amount of R$50 million due in 2020 and 2021, respectively.

The final amount of the issuance will depend on market conditions. The proceeds would be used to fund the company's capital expenditure plan.

Fitch said it currently rates Iguatemi with a national scale rating of AA+(bra).

The outlook is stable.

The ratings reflect its dominant business position in the Brazilian shopping center market with participations in 13 shopping centers and three office towers, the agency said.

Positively factored into the ratings are the solid business fundamentals for Brazil's shopping mall industry over the medium term given the scarcity of quality leasable retail space, Fitch said.

The strength and track record of the company's controlling shareholder, Jereissati Participacoes SA, also is an important consideration, the agency said.

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