Fitch: Elektra notes at BB-

Fitch Ratings said it assigned foreign- and local-currency issuer default ratings of BB- to Grupo Elektra, SAB de CV's proposed $350 million of senior notes due 2018.

The proposed notes will be unsecured and have the guarantee of all non-regulated subsidiaries, Fitch said.

The proceeds will be used to refinance existing debt and general corporate uses, including working capital and capital expenditure, Fitch said.

The company also has a long-term national scale rating of A(mex), short-term national scale rating of F2(mex), Ps.4 billion long-term certificados bursatiles issuances rating of A(mex) and Ps. 5 billion short- and long-term certificados bursatiles program ratings of F2(mex) and A(mex), respectively.

The outlook is stable.

The ratings reflect the company's geographical diversification, market position in the retail and finance segments and the strong linkage between both operations, Fitch said.

The company's funding mix and costs are its main strengths, the agency said.

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