...Rating Outlook Revised to Stable: The revision to a Stable Outlook reflects Fitch Ratings' view that a rating upgrade for El Puerto de Liverpool, S.A.B. de C.V. (Liverpool) is unlikely in the next 12 months, as the company will increase its debt levels enough to fund the acquisition of retail chain Suburbia and an equity position in department store company Ripley Corp. S.A. On a pro forma basis, adjusted debt/EBITDAR for Liverpool would be 2.6x for 2017, which would be higher than the past five years' average but still consistent with the current rating category. Strong Market Position: Liverpool is the leader in the middle-, middle-high- and high-income segments of department stores in Mexico. During the LTM ended June 30, 2016, the company's retail revenue reached MXN83.5 billion, 13.6% above that achieved in 2015. As of June 2016, the company operated 113 stores across 57 cities throughout Mexico. Around 80% of total units were owned by Liverpool. Format and Business Diversification:...
