S&P lifts Hypermarcas view

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

At the same time, the agency said it affirmed its BB- ratings on the company.

The agency said the outlook change reflects its expectation that Hypermarcas will continue to improve its operating and financial performance in the coming years, following several quarters of poor cash generation and weak credit metrics in 2011.

S&P said the outlook change also reflects a change in its assessment of the company's liquidity to strong due to the expectation that the company will maintain significant cash reserves, which mitigates the still high gross leverage metrics for its rating category.

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