Fitch: Hypermarcas, notes BB

Fitch Ratings said it assigned foreign- and local-currency issuer default ratings of BB to Hypermarcas SA, along with a BB rating to its proposed notes issuance of about $500 million due 2021 and a national scale rating of A+(bra).

The proceeds will be used to refinance indebtedness.

The outlook is stable.

The ratings reflect its leading position in the competitive Brazilian consumer products sector, the strength and diversification of its brands and strong, yet somewhat volatile, cash flows, Fitch said.

The ratings also consider the company's aggressive expansion via acquisitions that have been financed with a mix of debt and equity, the agency said, and constrain the company's credit profile.

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