Moody's rates CCM notes Baa2

Moody's Investors Service assigned a Baa2 rating to the $200 million senior unsecured note issue due 2015 of Controladora Comercial Mexicana SA de CV.

Moody's said the rating reflects CCM's moderate adjusted leverage, its cash generation on a local currency basis and the potential financial flexibility offered by a large unencumbered asset base relative to funded debt.

However, these credit positives are balanced by its smaller scale, historically lower growth rates and lower-than-average store productivity relative to its competitors.

CCM will use proceeds from the new debt issue to refinance all of its outstanding debt of $191 million, composed of a bilateral term bank loan of $35.8 million, long-term UDI denominated debentures of $56.1 million and $100 million of senior unsecured notes due 2010.

The outlook is stable yet is sensitive to deviations from expectations, Moody's said.

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