Fitch rates InRetail notes BB

Fitch Ratings said it assigned a foreign-currency issuer default rating of BB to InRetail Real Estate Corp., along with a local-currency issuer default rating of BB.

The agency also said it assigned a BB rating to its proposed senior unsecured notes to be issued by InRetail Shopping Malls.

The outlook is stable.

InRetail Shopping Malls is a fully owned subsidiary of InRetail Real Estate, Fitch said, and fully and unconditionally guarantees the notes.

The target amount of the proposed issuance is $300 million; the final amount of the issuance will depend on market conditions, Fitch said.

The proceeds from the seven-year proposed issuance will be used primarily to fund the company’s capital expenditures plan, refinance existing debt and strengthen its liquidity, the agency said.

The ratings reflect the company’s solid business position, stable and predictable cash flow generation and expected levels of leverage, liquidity and unencumbered assets post-proposed issuance, Fitch said.

The ratings also consider the positive industry momentum riding on Peru’s favorable economic environment, the agency said, and the low working capital requirements of the industry.

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