Fitch cuts Shoppers Stop program

Fitch Ratings said it has downgraded the ratings of Shoppers Stop Ltd.'s Rs. 300 million short-term debt program and its Rs. 500 million commercial paper program, carved out of fund-based working capital limits, to F1(ind) from F1+(ind).

According to the agency, the downgrades reflect Shoppers Stop's ongoing margin pressures due to slower sales growth and losses from new businesses, which in turn has resulted in deteriorating credit metrics.

The company's business has been impacted by slowing same store sales growth and the ongoing slowdown in domestic consumer spending, Fitch said, adding that it expects this situation to continue over the short- to medium-term.

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