NEW YORK--(BUSINESS WIRE)--Fitch Ratings has withdrawn the expected rating for BR Malls Participacoes S.A.'s (BRMALLS) BRL200 million proposed debentures. Fitch is withdrawing this specific security rating as the transaction was not executed. The issuer is not considering pursuing this transaction.
Fitch currently rates BRMALLS as follows:
--Foreign Currency Issuer Default Rating (IDR) 'BB+';
--Local Currency IDR 'BB+';
--Long-term national scale rating 'AA+(bra)';
--BRL400 million local debentures, first and second tranches due in 2017 and 2019 'AA+ (bra)';
--BRL270 million local debentures due in 2016 'AA+(bra)'.
Fitch currently rates BR Malls International Finance Limited (Finco)'s perpetual notes as follows:
--USD405 million perpetual notes 'BB+'.
The Rating Outlook for BRMALLS' Long-Term IDR is Negative.
The Rating Outlook for BRMALLS' Local Currency Long-Term and National Long-Term Rating is Positive.
KEY RATING DRIVERS
BRMALLS' ratings incorporate its business position as the largest Brazilian shopping center operator, stable and predictable cash flow generation, geographical and property revenue base diversification, and low working capital requirements with renters responsible for most maintenance expenses. The ratings also factor in BRMALLS' growth strategy, stable capital structure, a large pool of unencumbered assets, and successful track record in growing the business. The company's consistent use of a balance of equity and debt to fund its organic and inorganic growth during the past five years has kept leverage levels low relative to the value of its assets.
Negative Rating Actions: The foreign currency ratings of BRMALLS could be negatively impacted by a negative rating action on the sovereign rating of Brazil and/or a downgrade of its country ceiling. The Outlook for Brazil's foreign currency rating is currently Negative.
Positive Rating Actions: BRMALLS' Local Currency IDR and National Scale ratings currently have a Positive Rating Outlook. The Outlook reflects Fitch's expectations of continued consistent operational performance despite Brazil's current business environment.
Date of Relevant Rating Committee: Nov. 23, 2015.
Additional information is available at 'www.fitchratings.com'.
Corporate Rating Methodology - Including Short-Term Ratings and Parent and Subsidiary Linkage (pub. 17 Aug 2015)