Fitch lowers Parkson Retail

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

Fitch also said it assigned a negative outlook to the issuer default rating and recovery rating of RR4 to the senior unsecured rating.

The downgrades reflect the continued deterioration in Parkson's core business and its rising leverage, the agency said.

The negative outlook reflects the uncertainty about the stabilization of same-store sales, Fitch said.

Parkson's fundamentals also have steadily deteriorated over the past few years due to weaker consumer spending and competition from other retail formats, such as e-commerce and shopping malls, the agency said.

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