Fitch rates Signet notes BBB-

Fitch Ratings said it assigned a rating of BBB- to Signet UK Finance plc's proposed issue of $400 million 10-year senior unsecured notes.

The company also has a long-term issuer default rating of BBB-.

Fitch said it expects the new notes will be used to partly fund the announced acquisition of Zale Corp. by Signet.

Signet expects to fund the acquisition with $1.4 billion of debt, including about $600 million of receivables securitization, the agency said.

The ratings reflect the consolidated credit profile of Signet Jewelers Ltd., Signet UK Finance plc's indirect parent company, Fitch said.

The notes will be pari passu with all the existing and future unsecured and unsubordinated obligations at Signet and certain subsidiaries of Signet, the agency said.

The ratings reflect Signet's and Zale's leading shares in the specialty jewelry market in the United States, as well as the United Kingdom and Canada, Fitch said.

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