S&P rates Grupo Gicsa notes mxA

S&P said it assigned a national scale mxA rating to Grupo Gicsa SAB de CV's Ps. 2.5 billion senior unsecured notes, along with a recovery rating of 3, which is the same level as the company's other notes.

The recovery rating on the notes indicates 50% to 90% expected default recovery.

The new notes are part of the program for up to Ps. 9 billion, which the company has implemented through five outstanding issuances, S&P said.

Similar to other issuances, the notes have a bullet amortization profile, maturing in three years and bear interest on the Mexican reference rate, plus a spread, the agency said.

S&P said it believes the issuance will continue to support the company's expansion plan in the next 12 months without weakening its liquidity position in the short term.

The ratings also consider the strengths of its property profile in prime locations, diversified tenant base and lease prices that are higher than market average thanks to the company's high profile assets under management, the agency said.

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