Fitch rates El Corte notes BB+

Fitch Ratings said it published El Corte Ingles SA's long-term issuer default rating at BB with a positive outlook.

The agency also published the company’s expected rating of BB+/RR2 for its planned €600 million senior unsecured notes.

Proceeds will be used to refinance El Corte’s bridge-to-bond loan, as well as part of its existing employees’ promissory notes as and when maturities come due.

“The IDR of BB reflects ECI's strong market position and large scale in the Spanish department store segment with a wide product and service offering, which is balanced by the company's lower, albeit improving, profitability compared with rated peers,” the agency said in a news release.

“The rating and the positive outlook are underpinned by our expectation of further progress by ECI in achieving its profitability targets, on the back of its retail strategic plan, and deleveraging.”

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