S&P rates El Puerto de Liverpool notes BBB+

S&P said it assigned a BBB+ rating on El Puerto de Liverpool SAB de CV's proposed long-term senior unsecured notes.

The proceeds will be used for general corporate purposes, including the financing of a portion of the proposed acquisition in Mexico, the agency said.

The rating is the same as the corporate credit rating given that Liverpool's subsidiary, Distribuidora Liverpool, will guarantee the proposed notes.

The subsidiary generates about 90% of Liverpool's revenue and the proposed long-term senior unsecured notes will be pari passu the other local- and global-debt issued by Liverpool.

S&P also said it expects the company to hedge the principal and interest, thus eliminating any currency mismatch considering the proposed notes are dollar-denominated and 100% of the company’s revenues are denominated in Mexican pesos.

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