S&P rates Gigante, notes BB

Standard & Poor's said it assigned its BB corporate credit rating to Grupo Gigante SA de CV.

At the same time, S&P said it assigned its BB rating to Gigante's $250 million notes due 2016.

The outlook is stable.

S&P noted that the ratings reflect Gigante's relatively high debt leverage, its fair financial profile, the risks imposed by the increased competition in most business formats in which Gigante participates and the correlation with economic cycles.

Balancing this position are the steps taken by the company to improve operating efficiencies and margins and its position as one of the top players in the highly competitive Mexican supermarket industry, the agency added.

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