Moody's cuts Intercorp notes to B2

Moody's Investors Service said it downgraded to B2 from B1 the rating of Intercorp Retail Inc.'s $300 million 8 7/8% senior guaranteed notes due 2018.

The B1 corporate family rating was affirmed and the outlook is stable.

"The rating downgrade reflects Intercorp's senior guaranteed notes increased structural subordination to Intercorp's debt at the subsidiary level, in particular to debt from companies in the unrestricted subsidiary group," Moody's assistant vice president Alonso Sanchez said in a news release.

The ratings are supported by Intercorp's defensive business profile in its food and pharmacy retail operation; its relevant market position in the Peruvian retail sector despite its relatively small size compared to other international peers; and its experienced management team, the agency said.

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