Fitch rates Elektra notes BB-

Fitch Ratings said it assigned a BB- rating to Elektra SAB de CV's $150 million reopening of its senior notes due 2018.

The company also said it affirmed the company's foreign- and local-currency issuer default rating at BB-, long-term national scale rating at A(mex), short-term national scale rating at F2(mex), $400 million senior notes due 2018 at BB-, Ps. 3 billion long-term certificados bursatiles issuances at A(mex), Ps. 5 billion short- and long-term certificados bursatiles program at F2(mex) and A(mex), respectively.

The notes are unsecured and have the guarantee of all non-regulated subsidiaries, including Elektra del Milenio, SA de CV, Salinas y Rocha, SA de CV, Comercializadora de Motocicletas de Calidad, SA de CV, Inmuebles Ardoma, SA de CV, Procuraduria de Cobranza Judicial, SA de CV, Elektra Guatemala SA de CV, Servicios de Telecomunicaciones Viva, SA de CV and GS Distribucion, SA de CV.

The proceeds are expected to be used primarily for potential acquisitions and general corporate uses.

The outlook is stable.

The ratings reflect its operation's geographical diversification, its market position both in the retail and finance business and the strong linkage between both operations, Fitch said.

The ratings are supported by its market share, being one of the leading chains in its sector, the agency said.

The ratings also consider the company's approach - offering financial services to low-income retail customers, Fitch said.

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