...Good Fundamentals Lead to Limited Rating Actions Long-term fundamentals for the Peruvian shopping mall sector are solid due to strong economic growth. A limited supply of leasable space has resulted in strong operational performance that is expected to continue in 2014 and 2015. As a result, negative rating actions are expected to be limited. Peru's economy has enjoyed 15 years of uninterrupted growth and Fitch is projecting GDP growth of 5.4% in 2014. Peru's favorable economic environment has led to an increase in disposable income, which in turn has supported continued growth in retail sales and an increasing need for leasable area. Market Dynamics Attracting Investments The GLA growth rate of new shopping center openings increased by 50% compared with 2012, reflecting a strong desire of operators to expand their coverage in the country. Shopping mall sales increased in 2013 by 25% versus the prior year. Investment in the sector was estimated at USD1.4 billion between 2010 and 2013. Interest...
