Fitch rates CFR notes BBB-

Fitch Ratings said it assigned foreign- and local-currency issuer default ratings of BBB- to CFR Pharmaceuticals SA, along with an expected rating of BBB- to CFR International SpA's proposed up to $300 million senior unsecured notes.

The proceeds will be used to fund the purchase of Laboratorio Franco Colombiano (Lafrancol) in Colombia and for general corporate purposes.

The company has a long-term national scale rating of A(cl), local bonds N-730 and N-731 rating of A(cl) and equity rating of primera clase nivel 3.

The outlook is stable.

The senior unsecured notes are expected to be fully and unconditionally guaranteed by CFR Pharmaceuticals and its main operating subsidiaries, Laboratorios Recalcine SA, Farmindustria SA, Laboratorio Synthesis SA and Sundelight Corp.

The ratings reflect the company's sound capital structure and its strong business position in the Chilean and Peruvian prescription drug markets, Fitch said.

They also take into consideration the improved diversification of the company's business due to its acquisition of Lafrancol in Colombia and the benefits of being the market leader in that market, the agency said.

The ratings are constrained by ongoing challenges related to integrating recently acquired businesses, as well as maintaining its market leading positions in an environment of strong competition, Fitch said.

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