Moody’s changes InRetail view to stable

Moody’s Investors Service said it affirmed the Ba2 senior unsecured rating of InRetail Shopping Malls and revised the rating outlook to stable from negative.

“Moody’s affirmation of InRetail Shopping Malls’ Ba2 senior unsecured rating and the revision of the rating outlook incorporate the company’s status as the largest mall owner and operator in Peru as well as its stable cash flows and solid margins from its good-quality portfolio. The revision of the outlook to stable also reflects the company’s recent delivery of its newest flagship, Real Plaza Puruchuco, the largest shopping mall in the country,” said Moody’s in a press release.

The new mall increased the portfolio’s footprint by about 20% and is projected to generate about $20 million of EBITDA upon stabilization. IRSM’s portfolio now has 22 malls. Other factors Moody’s considered include a large unencumbered asset pool and a solid fixed charge coverage ratio, which support the REIT’s financial flexibility.

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