Fitch Rates Credito Real's Proposed Senior Unsecured Notes 'BB+(exp)'

MONTERREY, Mexico--(BUSINESS WIRE)-- Fitch Ratings has assigned Credito Real S.A.B. de C.V. Sofom, E.R.'s, (Credito Real) proposed issue of seven-year senior unsecured notes for up to USD650 million an expected rating of 'BB+(exp)'.

The notes will be issued at a floating rate with semi-annual interest payments. The principal will be paid at maturity. The net proceeds from the offering will be used to refinance current debt. The company will hedge both FX rate risk and interest rate risk with cross-currency swaps and caps for both the principal and interest payments.

The assignment of the final rating is contingent upon the receipt of the final terms and documentation to confirm the preliminary information received.

KEY RATING DRIVERS

The notes are senior unsecured and rank equally with all of the company's current and future outstanding unsecured debt. The ratings assigned to these notes are the same as Credito Real's Long-Term Issuer Default Ratings of 'BB+'.

RATING SENSITIVITIES

The rating of this issue will remain aligned to the company's Long-Term IDRs and, therefore, it would mirror any potential change on the latter.

For further details on the key rating drivers and sensitivities of Credito Real's IDRs and national ratings, see the Rating Action Commentary 'Correction: Fitch Assigns 'BB+' L-T IDR to Credito Real' dated May 3, 2016, and available at Fitch's website on www.fitchratings.com.

Date of Relevant Rating Committee: June 15, 2016.

Additional information is available on www.fitchratings.com

Summary of Financial Statement Adjustments: Pre-paid expenses were reclassified as other intangibles and deducted from Fitch Core Capital. Results from investments in associates were reclassified as operating. No other relevant adjustments were made.

Applicable CriteriaExposure Draft: Global Non-Bank Financial Institutions Rating Criteria (pub. 14 Apr 2016)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=879126National Scale Ratings Criteria (pub. 30 Oct 2013)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=720082

Additional DisclosuresDodd-Frank Rating Information Disclosure Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1008575Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1008575Endorsement Policyhttps://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160707006239/en/

Fitch Ratings
Primary Analyst
Alba Maria Zavala, CFA
Associate Director
+52-81-83-99-9137
Fitch Mexico, S.A. de C.V.
Prol. Alfonso Reyes 2612,
Monterrey, N.L. Mexico
or
Secondary Analyst
Veronica Chau
Senior Director
+52-81-83-99-9169
or
Committee Chairperson
Alejandro Garcia, CFA
Managing Director
+1-212-908-9137
or
Media Relations
Elizabeth Fogerty, New York, +1 212-908-0526
[email protected]

Source: Fitch Ratings

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