...Rating Derivation Versus Peers Peer Comparison Cencosud's `BBB¡' rating reflects its diversified business profile with activities in food retail, shopping mall, department store and nonfood retail segments as well as its geographic diversification in Latin America. The company also benefits from high level of unencumbered assets. Cencosud has strong leadership in the retail food segment in Chile, Argentina, Peru and Colombia. The group's EBITDAR margin compares favorably to its international food peers such as Carrefour SA (BBB+/Stable) or Walmart, Inc. (AA/Stable) because of its business mix. Constraining factors are the company's exposure to Argentina, which is rated `B', and its weak performance in Brazil. The company is developing an omnichannel strategy due to the growing competition of online retail. However, the online retail competition in the food segment remains less intense than in the nonfood segment and it is less developed than in mature markets, where international competitors...
