S&P rates El Puerto de Liverpool notes BB+

Standard & Poor's said it assigned its BBB+ global scale corporate credit rating on El Puerto de Liverpool, SAB de CV and to its proposed long-term senior unsecured notes.

The outlook is stable.

"The ratings on Liverpool reflect the company's good operating performance despite a more challenging economic environment in a highly fragmented and competitive retail industry in Mexico, its satisfactory management team, and our expectation that the company will continue funding its expansion program mainly with own cash flow generation," S&P credit analyst Sandra Tinoco said in a news release.

The ratings also incorporate the agency’s expectation that the company will continue posting negative free operating cash flow given its high working capital needs and expansion program.

In addition, S&P said it incorporated the company's "adequate" liquidity in its analysis. It assigned El Puerto de Liverpool a positive rating comparison due to its favorable market share and solid debt-to-EBITDA and funds from operations-to-debt ratios compared with other global and regional companies.

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