Fitch affirms, withdraws Parkson Retail

Fitch Ratings said it affirmed Parkson Retail Group Ltd.'s long-term issuer default rating at B- with a stable outlook.

The agency also withdrew Parkson's issuer default rating for commercial reasons.

The senior unsecured rating was also withdrawn as the company's $500 million 4˝% bonds due 2018 were redeemed.

“The company's business profile has been hurt by weaker consumer spending and competition from other retail formats, while profitability has been negatively affected by a high proportion of rented properties,” Fitch said in a news release.

“Parkson's financial profile is also weaker than that of peers, such as Golden Eagle Retail Group Ltd. (BB/stable), with lower coverage and higher leverage ratios.”

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