Fitch rates General Shopping Brasil, bonds BB-

Fitch Ratings said it assigned to General Shopping Brasil SA a foreign-currency issuer default rating of BB-, local-currency issuer default rating of BB- and national scale ratings of A-(bra).

Fitch also said it assigned a BB- rating to its proposed perpetual bonds issuance. These perpetual bonds will be issued through its subsidiary, GSF, and will be irrevocably and unconditionally guaranteed by the company and all of its operating subsidiaries.

The target amount of the proposed issuance will be about $150 million. The proceeds will be used to fund the company's capital expenditure plan, refinance existing debt and strengthen the company's liquidity, the agency said.

The outlook is stable.

The ratings reflect the company's business position as one of the largest shopping center operators in Brazil's southeastern and southern regions with participation in 13 shopping centers, stable and predictable cash flow generation and positive macroeconomic environment, Fitch said.

The ratings also incorporate its diversified tenant base, large pool of unencumbered assets, a comfortable debt payment schedule and low working capital requirements with leases responsible for most maintenance expenses, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.