Fitch affirms Pick n Pay

Fitch Ratings said it affirmed Pick n Pay Stores Ltd.'s national long-term rating at A+(zaf) with stable outlook and its national short-term rating at F1(zaf).

The affirmation reflects Pick n Pay's leading position in South Africa's food retail sector and its continued solid performance despite a deteriorating retail and consumer environment, interest rate rises and inflationary pressure resulting in lower consumer spending, according to the agency.

Pick n Pay's diversified brands and the defensive nature of the food retail business tend to moderate potential declines in revenue and operating margins arising from lower consumer spending and confidence, the agency noted.

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