Moody’s assigns Lojas Americanas, notes Ba1

Moody’s Investors Service said it assigned a Ba1 corporate family rating to Lojas Americanas SA. Simultaneously, Moody’s assigned a Ba1 rating to the proposed senior unsecured notes by JSM Global Sarl and guaranteed by Lojas Americanas. This assignment is the first time Moody’s rates Lojas Americanas.

“Lojas Americanas ratings incorporate its competitive position as one of the largest retailers in Brazil with relevant integration of online, via B2W Companhia Digital, and physical stores; an improvement in credit metrics and more adequate capital structure following a BRL 7.9 billion equity injection and B2W follow-on; and its committed shareholders with a history of supporting the business,” the agency said in a press release.

Proceeds will be used to refinance a portion of short and medium-term debt and for general corporate purposes.

The outlook is stable. “The stable outlook incorporates our expectation that Lojas Americanas will maintain a very robust liquidity profile while its cash generation ability as measured by EBITDA-Capex/Interest expenses continues to improve,” Moody’s said.

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