S&P affirms Casino

Standard & Poor's said it affirmed the BBB-/A-3 ratings on Casino Guichard-Perrachon & Cie SA following its recent acquisition of a more than 9% stake in Grupo Pao de Acucar, which has brought its economic stake to 43%.

The affirmation reflects a view that despite the recent increase of Casino's stake in Grupo Pao de Acucar, the company will likely maintain financial metrics at levels considered adequate for the current ratings, S&P said.

An increase in Casino's EBITDA from international operations will likely mitigate an increase in its financial debt resulting from the transaction, the agency said.

The assessment does not factor in any developments resulting from the current discussions impacting the Brazilian retail market, S&P said.

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