El Palacio de Hierro receives AAA credit rating
What: Two credit agencies, Fitch Rating and HR Rating, have awarded El Palacio de Hierro a AAA rating following the close of a 102 million euros bond issue with a three-year maturity.
Why it is important: As part of a larger refinancing plan, the department store group will use the capital to improve the profile of its debt and investment plan.
The credit agencies have deemed the bond issue stable due to El Palacio de Hierro’s diversification of business and the stability in its operating cash flows. As well, the agencies highlighted the department store group’s success with commercial strategies for maintaining its market positioning.
The resources obtained will be used to refinance another bond of 51 million euros due in 2023. In addition, investment in digital technologies has been mentioned following a registered 31% increase in digital sales in the first half of 2022.