S&P gives Credito Real notes B+

S&P said it assigned a B+ issue-level rating to Credito Real SAB de CV, Sofom, ENR’s subordinated perpetual notes for up to $230 million.

Proceeds will be used to refinance market debt, enhance capitalization and for general corporate purposes.

The agency said the rating on the company's notes is three notches below the issuer credit rating due to their contractual subordination to other senior debt and their discretionary non-payment clause, which allows the instrument to defer coupon payments.

“In our opinion, the proposed notes issuance will improve the lender's debt maturity profile and decrease its refinancing risk amid currently volatile market conditions,” S&P said in a news release.

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