Fitch rates Deutsche Bank Mexico notes BBB

Fitch Ratings said it assigned a local-currency issuer default rating to Deutsche Bank Mexico, SA, Institucion de Banca Multiple, Division Fiduciaria F/1401 (Funo).

The agency also assigned a BBB foreign-currency issuer default rating to the company and an expected BBB rating to its proposed up to $800 million senior unsecured notes due in 2044.

The outlook is stable.

The ratings reflect Funo's solid market position as the leader and first REIT in Mexico, Fitch said.

The ratings also consider the company's large, well-diversified portfolio of industrial, retail and office properties, strong franchise value, good quality tenants, high occupancy rates, adequate credit metrics for the rating and adequate financial flexibility highlighted by good access to capital and growing unencumbered asset pool, the agency said.

These strengths are offset by its externally managed structure and its aggressive growth strategy that may theoretically hinder the acquisition of same quality properties as the ones that are currently in the portfolio, Fitch said.

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