S&P turns Falabella view to stable

S&P said it revised its outlook on Falabella SA to stable from negative and affirmed the BBB issuer credit and issue-level ratings.

“Despite strict and extensive lockdowns in most of the countries where Falabella operates, it posted better-than-expected operating performance. The e-commerce unit's 123% gross merchandise value growth in 2020 and 142% year-over-year pace as of March 2021, resilient and strong results of the company's supermarket segment in Chile and Peru, coupled with solid results across its various retail formats in Chile allowed the company to exceed our performance expectations in the fourth quarter of 2020 and first quarter of 2021,” S&P said in a press release.

The outlook reflects an expectation that Falabella’s operations will continue recovering in 2021 and post gradual revenue and EBITDA growth in 2022, S&P said.

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