Fitch upgrades Parkson Retail

Fitch Ratings said it upgraded Parkson Retail Group Ltd.'s long-term issuer default rating to B- from CCC and assigned a stable outlook.

The agency also upgraded the senior unsecured rating and the rating on its $500 million 4½% bonds due 2018 to B- from CCC with a recovery rating of RR4.

The ratings were removed from Rating Watch positive.

The upgrades follow news that the company secured refinancing arrangements for its $500 million bonds due in May 2018.

The upgrades also reflect an expectation that Parkson's liquidity will improve in 2018 after it secured a credit facility from the Bank of Beijing for ¥3.5 billion, Fitch said.

This facility will be used to repay or refinance the company's $500 million 4½% bonds due in May 2018,.

A tender offer for the outstanding bonds was made Jan. 9, 2018, Fitch said, and the agency said it expects any amount not redeemed through the offer to be repaid upon bond maturity.

The credit facility is denominated in dollars and will be secured by Parkson's retail properties in Beijing and Qingdao, as well as cash on hand.

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