Fitch: Distribución & Servicios on evolving watch

Following an announcement on Dec. 19 that Wal-Mart Stores, Inc. has launched a tender offer to acquire all issued and outstanding shares and American Depositary Shares of Distribución & Servicios D&S SA, Fitch Ratings said it has placed the following D&S ratings on rating watch evolving:

• long-term national-scale rating AA-(Chl); short-term national-scale rating F1+(Chl); issuer default rating BBB; and local and foreign currency issuer default ratings BBB.

The terms of the Wal-Mart tender establish Jan. 23 as the deadline for the existing D&S shareholders to respond to the acquisition proposal, the agency said.

Fitch added that it considers that the proposed acquisition would benefit D&S, given Wal-Mart's (long-term issuer default rating rated AA) position as the world's largest retailer, its operating expertise and financial profile.

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