Moody's: Ferreycorp notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to Ferreycorp SAA's proposed senior unsecured global notes for an amount up to $300 million and a tenor of 10 years.

Moody's also said it assigned a Ba1 global local-currency corporate family rating to Ferreycorp.

The outlook is stable.

The proceeds will be used mainly to refinance existing short-term debt that the company used to partially fund its working capital needs.

The rating is supported by Ferreycorp's status as Caterpillar Inc.'s sole distributor in Peru, Guatemala, El Salvador and Belize, which affords it with leading market positions in the construction and mining segments, the agency said.

The company's track record of stable operating performance, as evidenced by its strong backlog and well-balanced business between new unit sales and parts and services, also benefit the rating, said Veronica Amendola, a Moody's analyst.

Credit negatives partly offsetting these strengths include Ferreycorp's relatively modest liquidity, concentration of cash flows in the cyclical construction and mining industries, the agency said, and an aggressive capital expenditures program.

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