S&P assigns A- rating to Femsa notes

S&P said it assigned an A- rating to Fomento Economico Mexicano SAB de CV’s proposed offering of up to $2 billion of senior unsecured notes due 2029 and 2049.

“The rating on the notes is at the same level as the issuer credit rating, reflecting our view that there's no significant subordination risk present in Femsa’s capital structure, particularly considering the company’s low leverage ratio of below 1.5x,” said S&P in a press release.

Femsa’s subsidiaries are not guaranteeing the notes, which will rank pari passu in right of order and payment with the unsecured notes issued at the Femsa level.

Proceeds are planned to be used for general corporate purposes over the next 12 to 24 months.

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