Fitch cuts D&S foreign, local currency

Fitch Ratings said it downgraded the foreign currency and local currency issuer default ratings of Distribucion y Servicios D&S SA to BBB from BBB+.

Fitch also said it has affirmed the national scale long-term rating for D&S at AA- and its short- term rating at F1+.

The action reflects an increasingly competitive retail environment in Chile, which in recent years has put pressure on the company's margin levels, and volatility that has spurred high capital investment requirements, the agency noted.

The ratings of D&S are supported by the company's strong competitive position in the Chilean food retail industry with a 35% market share, Fitch added.

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