S&P affirms Hypermarcas

Standard & Poor's said it affirmed the BB- long-term corporate credit and senior unsecured debt rating on Hypermarcas SA, along with its Brazilian national scale rating at brA+.

The outlook is stable.

The agency said it believes Hypermarcas will continue benefiting from synergies from its past acquisitions, improving its credit metrics gradually during the next few years.

S&P also said it expects the company to moderate its growth plans.

The ratings reflect the risks of the company's aggressive growth strategy, aggressive gross leverage and negative cash-flow generation in the near term, the agency said.

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