Fitch gives San Miguel Industrias notes BB+

Fitch Ratings said it assigned a BB+ (EXP) rating to the proposed $300 million senior unsecured notes to be issued by San Miguel Industrias PET SA.

The notes will be fully and unconditionally guaranteed by its main subsidiaries in Ecuador, Colombia, Guatemala and El Salvador.

Proceeds will be used to refinance existing debt.

Fitch upgraded San Miguel Industrias in June. The upgrade reflected San Miguel Industrias’ improved business profile due to the successful renewal of its long-term contracts with several key customers and its expansion outside of Peru.

“Fitch expects to see rapid deleveraging over the next 18 months, based mainly on the execution of existing and new contracts (notably with Aje, Arca, and Plastiglas) and organic growth,” the agency said in a news release.

“In addition, Fitch does not expect any large debt-funded M&A over the next two years.”

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