Fitch downgrades Parkson to BB-

Fitch Ratings said it downgraded Parkson Retail Group Ltd.’s long-term issuer default rating and senior unsecured rating to BB- from BB.

The outlook remains negative.

Fitch said the downgrade reflects sustained deterioration in Parkson's leverage and fixed-charge coverage, pressured by weaker cash flow generation from narrowing profits from existing stores, losses at new stores and hefty capex commitments.

The negative outlook reflects the possibility of further deterioration in Parkson's performance amid continued contraction in Parkson's same-store sales since the first half of 2013, the agency said.

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