Fitch turns Cencosud view to positive

Fitch Ratings said it changed Cencosud SA’s outlook to positive from stable and affirmed its long-term (lt) foreign and local currency issuer default ratings and senior unsecured debt at 'BBB-'.

“The positive outlook reflects the view the company's adjusted gross and net debt to EBITDAR leverage ratios will continue improving and trending consistently to levels below 3.5x and 2.5x, respectively, during the 2021-2022 period, as a result of the company's consolidated operational strength during 2021-2022 despite the coronavirus pandemic impact,” Fitch said in a press release.

The agency noted the supermarket segment remained open, picked up business from restaurants, and benefitted from shopping trip consolidation. “The segment is expected to represent around 75% of total revenues during 2021, with expectations of a continued positive same-store sales (SSS) trend, as was achieved during 2020,” Fitch said.

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