Fitch rates Aldesa notes B

Fitch Ratings said it assigned an expected B rating with recovery rating of RR4 to Aldesa Agrupacion Empresarial SAU's proposed €300 million senior secured notes due 2025.

The bond is rated at the same level as Grupo Aldesa SA's long-term issuer default rating, the parent of Aldesa AE.

The rating assumes the proceeds from the new notes will fund the early redemption of the existing €250 million 7¼% notes due April 2021, as well as the call premium and transaction fees with any excess cash being kept as a source of group liquidity, Fitch said.

Aldesa and several material subsidiaries will guarantee the planned notes, which will be senior secured obligations of Aldesa, the agency said.

The proposed notes will rank equally in right of payment with all existing and future senior secured debt, including obligations under the revolving credit facility, Fitch said.

A solid record of risk management and the group's long relationships with major customers mitigates its concentration risks, the agency said.

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