Fitch rates Docuformas, notes B+

Fitch Ratings said it assigned Docuformas SAPI de CV long-term local and foreign currency issuer default ratings of B+ and short-term foreign and local currency ratings of B.

The outlook for the long-term ratings is stable.

At the same time, the agency assigned Docuformas' upcoming issue of up to $175 million Reg S/144A senior notes an expected long-term rating of B+(EXP), reflecting that these are senior unsecured obligations that rank pari passu with other senior debt, and therefore, the rating is aligned with the company's issuer default ratings.

Docuformas will use the net proceeds to refinance roughly $97 million of existing debt, while the rest will be used for growth. There will be no increased exposure to market risk as a result of the issuance, as it will be fully hedged with a cross currency swap.

Fitch said the ratings are highly influenced by the company’s profile due to its moderate franchise and specialization in the leasing segment in Mexico and its tight tangible capital metrics.

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