S&P Global Ratings affirmed InRetail Shopping Malls' BB long-term issuer and issue-level credit ratings, and revised the stand-alone credit profile of the company to bb+ from bb.
The outlook is stable.
The rating agency said InRetail Shopping's highly strategic role as real estate operator and developer of Intercorp Retail Inc.'s InRetail Peru Corp. was the reason for the rating affirmation as it aligns with and has dependence on the strategy and objectives of the group.
In addition, the revision on InRetail Shopping's stand-alone credit profile reflects the company's solid credit metrics helped by steady EBITDA margins and generation of cash flow, along with the prudent way of managing its debt, mitigating the risks of foreign exchange.
S&P also expects InRetail Shopping to sustain its high occupancy and renewal rates at its stable properties, while continuing to bolster its competitive edge in Peru's retail sector in the next 12 months through the execution of its expansion plans. As such, the rating agency expects the company's debt-to-EBITDA ratio to be at 6.0x, and debt-to-capital ratio at below 50% by the end of 2019.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings.