Fitch: Pick n Pay unchanged

Fitch Ratings said that Pick n Pay Stores Ltd.'s announcement to sell its Australian subsidiary, Franklins, will have no immediate impact on the company's A+(zaf) national long-term rating and F1(zaf) short-term rating.

The agency believes that Pick n Pay's agreement to sell its Australian food retail business to Metcash for an estimated ZAR 1.4 billion will enable the group to focus on its core markets in the emerging southern Africa region, and the sale proceeds are expected to be redeployed in existing operations and to also support growth opportunities in the region.

The ratings continue to reflect Pick n Pay's sound business profile supported by its multi-store format and diverse product range, Fitch said.

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