Fitch: Cencosud notes BBB-

Fitch Ratings said it assigned a BBB- rating to Cencosud SA’s proposed senior unsecured notes.

The proceeds from the issuance are expected to be used entirely to refinance debt, Fitch said.

The company has a long-term issuer default rating of BBB-, local-currency issuer default rating of BBB-, along with a BBB- rating on its $750 million unsecured notes due in 2021 and BBB- rating on its $1.2 billion unsecured notes due in 2023.

The outlook is negative.

The ratings reflect Cencosud’s solid regional market position, business and geographic diversification, critical size in the food segment relative to its main competitors, important presence in the non-food retail segment and high level of store ownership, Fitch said.

Factors constraining the ratings include the company’s high adjusted leverage and its exposure to Argentina’s high sovereign risk, the agency said.

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