Moody's rates InRetail bonds Ba2

Moody's Investors Service said it assigned a Ba2 global scale local-currency rating to InRetail Shopping Malls' proposed 20-year senior bonds, the issue size of which will be up to 200 million Peruvian nuevo sols. The outlook is stable.

The proceeds will be used prepay existing bank debt.

The agency said the rating incorporates improvement in the company's already low near-term debt maturity schedule and an increase in the unencumbered asset pool to 94% from 76% on a pro forma basis. The rating continues to reflect the company's industry leadership in the Peruvian shopping mall sector, high occupancy, well-laddered lease maturity schedule and experienced management team, Moody’s added.

In the agency’s view, these strengths are mitigated by the company's small size in terms of total assets, weak liquidity profile and high tenant, geographic and asset concentration.

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