Fitch: BR Malls notes AA(bra)

Fitch Ratings said it assigned an AA(bra) rating to BR Malls Participacoes SA's proposed debentures in the expected amount of R$400 million.

The proceeds from the issuance would be used to fund the company's capital expenditure plan, refinance existing debt and for general corporate purposes.

BR Malls has a foreign-currency issuer default rating of BB+, local-currency issuer default rating of BB+ and long-term national scale rating of AA(bra), along with the AA(bra) rating on its R$320 million local debentures, first and second tranches due in 2014 and 2016 and AA(bra) rating on its R$400 million local debentures, first and second tranches due in 2017 and 2019.

BR Malls International Finance Ltd. has a foreign-currency issuer default rating of BB+, BB+ rating on its $175 million perpetual notes and BB+ rating on its $230 million perpetual notes.

The outlook is stable.

The ratings reflect the company's business position as the largest shopping center operator in Brazil with 51 malls throughout the country, which is an increase from 34 in 2008, Fitch said.

The revenue stream from these malls has resulted in stable and predictable cash flows, the agency said.

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