Fitch Ratings Affirms FUNO's AAA(mex) Rating, Cites FNEXT Deal

Fitch Ratings affirmed the AAA(mex) national long-term rating for Mexico-based FIBRA Uno (FUNO), citing the company’s market position as the largest and most diversified in Mexico and its recent nearshoring-focused spinoff FIBRA Next (FNEXT). The outlook for the long-term ratings is Stable.

Fitch Ratings also affirmed FUNO's long-term foreign and local currency Issuer Default Ratings (IDRs) at BBB-. The affirmation reflects FUNO’s adequate occupancy rates, diversified tenant base, and broad financial flexibility. Fitch also incorporated the potential for the FIBRA NEXT transaction to improve profitability and support a reduction in leverage.

Fitch Ratings' base case assumes FUNO will complete the FIBRA NEXT transaction in the coming months. This involves the contribution of FUNO's industrial portfolio, valued at MX$117 billion (US$6.3 billion), and the FIBRA NEXT portfolio, valued at MX$38.3 billion, into a new entity, Next Properties. Additionally, the transaction includes a debt exchange between FUNO and Next Properties of up to MX$53 billion, equivalent to 50% of FUNO's dollar-denominated bonds and other bank loans. Fitch Ratings recognizes that this debt exchange will not be available to local bondholders; however, it notes that local holders will maintain their exposure to the industrial assets through the dividend flows from Next Properties to FUNO.

As a result of the transaction, Fitch Ratings projects that FUNO's net leverage will decrease to around 6 times in the medium term, supported by the growth of the industrial portfolio and a higher consolidated EBITDA. The ratings agency estimates a consolidated EBITDA margin for FUNO of around 77% between 2026 and 2028, driven by the consolidation of FNEXT, which has margins near 80%, and savings due to its advisor internalization.