...Changes in Financial Retail Strategy Increased regulation of credit retail business has prompted some companies to reconsider changing their strategies from private credit card business toward business models more reliant upon banks. This change would reduce their finance subsidiaries' reliance upon parent company funding, improve their access to better financial conditions, and allow their retail businesses to benefit from the higher leverage allowed to banking institutions. In line with the above, Cencosud S.A. signed a joint venture with Banco Nova Scotia for the sale of 51% of its financial business in Chile, while Ripley Corp. integrated its Chilean credit business with its subsidiary Banco Ripley. Financial Business Pressures Credit Metrics Fitch Ratings' analysis segregates the debt related to credit retail business and makes analytical adjustments to get retail-only debt metrics. This allows a peer comparison, while the risk of the credit card portfolio is evaluated under a prism...
