Fitch rates Simon notes A

Fitch Ratings said it assigned an A rating to €500 million of 1.25% senior unsecured notes issued by Simon International Finance, SCA, a wholly-owned subsidiary of Simon Property Group, Inc.

The notes are guaranteed by Simon Property Group LP.

The company’s A long-term issuer default rating reflects the strong quality of the company's retail real estate portfolio, significant scale and market-leading access to capital, Fitch said.

Other credit strengths include the company's good liquidity and financial flexibility, the agency said.

The biggest wildcard for bondholders relates to whether Simon's partially utilized $2 billion common-stock repurchase program and its bid for the Macerich Co. last year reflect a more shareholder-friendly capital allocation policy, Fitch explained.

But the company has reiterated a commitment to maintaining its existing ratings, the agency added.

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