Fitch changes Grupo Famsa view

Fitch Ratings said it affirmed Grupo Famsa SAB de CV's long-term local and foreign currency issuer default ratings at B-, national long-term rating at BB(mex) and national short-term rating at B(mex).

The outlook was revised to positive from stable.

The ratings reflect Grupo Famsa’s market position within the Mexican retail sector, geographic and product diversification, stable operating cash flow generation by the Mexican retail operation and the expectation of a gradual improvement in leverage, the agency said.

Famsa's positive outlook reflects its improving financial position followed the deleveraging plan and short-term debt refinancing the company has executed since 2017, Fitch said.

The agency said the outlook considers the increased confidence in Famsa's ability to keep improving consolidated profitability and to turn over its U.S. operation results.

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