Fitch: Hypermarcas unchanged

Fitch Ratings said it views Hypermarcas SA's recent announcement that it divested its home care and food business units for R$445 million as neutral to its credit ratings, including its BB long-term foreign- and local-currency issuer default ratings, BB senior notes due 2021, A+(bra) long-term national scale rating and A+(bra) third debentures issuance.

The transaction enhances Hypermarcas' cash position but is not sufficient to materially change its currently high financial leverage, the agency said. On a pro forma basis, the net debt-to-EBITDA ratio decreased to 3.5 times from 4.1 times for the last 12 months ended Sept. 30.

Hypermarcas' leverage is high and is not consistent with its current ratings in the medium term, Fitch said, but it believes this is partially mitigated by Hypermarcas' adequate liquidity.

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