Netherlands-based general merchandise and food retailer Hema is proposing to refinance its existing debt maturities by issuing €610 million of senior secured notes, €150 million of senior unsecured notes, and a €100 million revolving credit facility (RCF). The successful issue of the proposed notes would enable Hema to extend its maturities and stabilize its capital structure. We are placing the 'CCC+' long-term corporate credit rating on CreditWatch with positive implications, and assigning a 'B-' issue rating to the proposed €610 million senior secured notes and a 'CCC' rating to the €150 million proposed senior unsecured notes. We are also assigning a 'B+' issue rating to the proposed €100 million RCF. We consider that the proposed refinancing would strengthen the group's
