S&P lowers Hypermarcas view

Standard & Poor's said it revised its outlook on Hypermarcas SA to negative from stable.

At the same time, the agency said it affirmed its BB- global-scale ratings on the company and lowered the long-term national-scale corporate credit rating to brA- from brA+.

The outlook is negative.

"The change in outlook indicates that we could downgrade Hypermarcas if its liquidity weakens or cash generation does not improve during the first half of 2012," said S&P credit analyst Debora Confortini in a news release.

The company's operating and financial performance over the past few quarters has been weak, and S&P believes the company's margin will remain under pressure until the inventory in the distribution chain decreases, which is expected by the beginning of 2012, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.