S&P rates Tanner notes BBB-

S&P said it assigned a BBB- debt rating to Tanner Servicios Financieros' senior unsecured medium-term notes due 2019 for CHF 150 million.

The rating on the notes is the same as the long-term issuer credit rating on Tanner, the agency said, and reflects a view that the notes will rank pari passu with the company's other senior unsecured debt.

The notes are expected to be unconditional, unsecured and unsubordinated obligations, S&P said.

The proceeds will be used for general corporate purposes.

The company’s funding and liquidity are not affected by the new issue, the agency said.

Although this new issuance represents about 15% of the company's total liabilities as of June 2016 and improves the stable funding ratio, S&P said it is still less than 90%.

The company is expected to hedge positions in order to avoid currency mismatches, the agency added.

The ratings also reflect an assessment of the company’s adequate business position given its healthy business mix and market position in the factoring and auto loan segments, S&P said.

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