Fitch stabilizes El Corte Ingles view

Fitch Ratings said it revised the outlook for El Corte Ingles, SA to stable from negative.

“The outlook revision reflects clear signs of a strong rebound in operating performance and our expectation that funds from operations (FFO) adjusted net leverage will return to below 4x in FY23 (ending February 2023). It also acknowledges the group's efforts in optimizing the capital structure and ability to manage inflation to recover profitability after the pandemic. The Mutua Madrilena (Mutua) transaction should help accelerate deleveraging towards positive sensitivities as long as proceeds are allocated to debt repayment,” the agency said in a press release.

El Corte Ingles’ issuer rating is BB+.

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