Fitch: Intime view to negative

Fitch Ratings said it revised Intime Retail (Group) Co. Ltd.'s outlook to negative from stable.

Its long-term foreign- and local-currency issuer default ratings and senior unsecured rating were affirmed at BB.

The outlook revision reflects a weaker operating environment for department store operators in China, which adds uncertainty to the timing of Intime's de-leveraging following a period of high capital expenditure, Fitch said.

The agency said it expects 2013 adjusted net leverage to peak at 5.5x as this year, which represents peak leverage for Intime. This will be up from 4.6x in 2012 despite a 16% year-over-year increase in the first half of 2013 EBITDA as adjusted net debt continued to rise, Fitch said.

Growing population, continued urbanization, rising disposable income and government policy all point to steady growth in retail in the long term, the agency said. But, other store formats like shopping malls and online retailers are threatening department stores' share of the retail industry, Fitch said.

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