Fitch upgrades Hypermarcas

Fitch Ratings said it upgraded the following ratings of Hypermarcas SA: long-term foreign currency issuer default rating to BB+ from BB; long-term local currency issuer default rating to BB+ from BB; long-term national scale rating to AA(bra) from A+(bra); senior unsecured notes due in 2021 to BB+ from BB; and third debentures issuance to AA(bra) from A+(bra).

The outlook is stable.

Fitch said the upgrades reflect Hypermarcas' improving profitability and credit metrics during 2013 and the expectation that this trend should continue through 2014, when the company's net leverage ratio is projected to reach 2.5 times. The rating actions also take into consideration the company's more conservative approach to growing through acquisitions.

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