Fitch downgrades DSG

Fitch Ratings said it downgraded DSG International plc's long-term issuer default rating and senior unsecured rating to BBB- from BBB and its short-term issuer default rating to F3 from F2.

The outlook for the long-term issuer default rating is stable.

According to Fitch, the rating downgrades reflect the continued weakening of the group's credit profile mainly due to ongoing internal business and structural industry issues.

"Although DSG still enjoys good financial flexibility, it is up against a difficult consumer environment and is facing continued industry challenges," Ching Mei Chia, an associate director at Fitch, said in a written statement. "The arrival of DSG's new CEO, John Browett, may provide strategic changes to pull DSG out of its current weakening position."

The company's ratings and outlook continue to be supported by the group's leading and dominant position in the United Kingdom, the agency said.

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