Fitch places Falabella on watch

Fitch Ratings said it placed Falabella SA's BBB- long-term foreign and local issuer default rating, AA-(cl) national scale and local bonds ratings, BBB- senior unsecured rating and national equity rating on rating watch negative (RWN).

Additionally, the agency placed Sodimac SA's AA-(cl) national scale and local bonds ratings on RWN, following the rating action on its parent Falabella.

“The RWN reflects the continued deterioration in operating trends and the limited visibility around the execution of extraordinary measures to reduce debt over the next six months to 12 months. A scenario in which leverage is sustained above Falabella's downgrade sensitivity post the implementation of management actions to revert this trend would likely lead to negative rating actions,” Fitch said in a press release.

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