Fitch affirms Intime

Fitch Ratings said it affirmed Intime Department Stores (Group) Ltd.'s long-term foreign- and local-currency issuer default ratings, local-currency senior debt rating and offshore renminbi senior notes at BB. The outlook is stable.

The agency said Intime's 36.2% revenue growth in 2011 was slower than Fitch's forecasts due to a weaker Chinese economy and, consequently, tighter consumer spending. In addition, most of Intime's new stores were opened during November and December and hence did not contribute fully to the company's total revenue and net income.

The ratings have been affirmed despite the weaker performance given the retail industry's favorable long-term fundamentals, supported by a growing middle-class Chinese population and China's rebalancing toward a consumption-led economy from an export-led economy, Fitch said.

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