Fitch rates Caparra Hills BB, bonds BBB-

Fitch Ratings said it assigned an initial issuer default rating of BB to Caparra Hills, Inc., along with a rating of BBB- to the company's $51 million secured bonds.

The Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority (AFICA) issued the secured bonds in August 2002.

The secured bonds are payable solely from payments made to AFICA by Caparra Hills, Fitch said.

AFICA serves solely as an issuing conduit for local qualified borrowers for purpose of issuing bonds pursuant a trust agreement between AFICA and a trustee, the agency said.

The outlook is stable.

The ratings reflect the stable cash flow generated by the company's lease portfolio, which passes the vast majority of its operating expenses on to its tenants, Fitch said.

Caparra Hills' properties have low vacancy rates and solid collateral values backing its secured debt, the agency said.

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