S&P rates Grupo Unicomer notes BB-

S&P said it assigned its BB- issue-level rating to Grupo Unicomer Co. Ltd.'s (formerly Regal Forest Holding Co. Ltd.) proposed senior unsecured notes of up to $350 million.

The company’s other ratings, including the BB- long-term corporate credit rating, are unchanged.

Unicomer plans to use the proceeds to refinance existing debt mainly related to maturities due between 2017 and 2019. The agency expects the proposed transaction to improve Unicomer's debt maturity profile.

The rating on the notes is at the same level as the corporate credit rating, which reflects the fact that the proposed notes will be fully and unconditionally guaranteed on a senior unsecured basis by most of its subsidiaries, which account for 86% of the company's consolidated assets and EBITDA as of Dec. 31.

S&P said the rating reflects Unicomer’s solid market position in the countries where it operates in Latin America and the Caribbean, its diversification in various segments, strong brand recognition and store development with attractive locations.

However, the offsetting factors are the company's smaller volume of sales than those of its regional rated retail companies and its exposure to high-risk countries, the agency added.

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