...Positive Operating Performance: New Look Retail Group Ltd (New Look) has continued to operate in line with Fitch Ratings' forecasts, with year-to-date revenue in 3Q16 (excluding the Mim brand) up by 5.6% year on year and last-12-month EBITDA margins trending towards 15% aided by robust growth in e-commerce. International expansion continues apace, with a target of 85 stores in China by March 2016, but we expect weaknesses in Europe to remain. Leverage Constrains Ratings: Fitch estimates funds from operations (FFO) adjusted gross leverage to reach around 7.0x by financial year-end March 2016. We view these metrics as being in line with the current rating compared with other highly speculative-grade European general/non-food retailers. Broadening Brand Reach: Fitch does not expect near-term changes to the group's underlying strategy of broadening and diversifying the brand's appeal and reach following New Look's acquisition by Brait S.E. New Look is diversifying into menswear, building on...
