S&P: El Puerto de Liverpool view to negative

S&P said it revised the outlook on the corporate credit rating on El Puerto de Liverpool, SAB de CV to negative from stable.

The agency also said it affirmed the BBB+ global scale and mxAAA/mxA-1+ national scale corporate credit ratings, along with the BBB+ and mxAAA issue-level ratings on Liverpool's debt.

The outlook revision reflects the deterioration that Liverpool's leverage metrics will show once the acquisition of Mexican retail company Suburbia takes place, S&P said.

Given that Liverpool will use its cash to fund the majority of the acquisition of Chile-based Ripley Corp., S&P said it will need about Ps. 19 billion of additional debt to fund the Suburbia acquisition.

The agency said it believes Liverpool will face significant challenges in the next 12- to 18-months after it closes the transaction, including integration risks.

These factors could hurt company's profitability, S&P said.

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