Liverpool stands out among global firms
The Mexican chain of department stores Liverpool exhibits strengths equal to those of global companies, said Fitch Ratings.
"It enjoys a solid position in the market and a healthy financial profile similar to that of its global counterparts Nordstrom, Kohl's, Macy's and Marks & Spencer (M&S)," the rating agency said.
"Liverpool's comparable sales have remained relatively stable over the past five years due to a favorable consumer environment and customer retention," said analyst Maria Pia Medrano.
Fitch also underlined that the same-store sales of Americans Nordstrom, Kohl's and Macy's were affected by the omnichannel expansion and "fast fashion".
In the case of the British Macy's and Spencer, their comparable sales are negative.
The credit rating agency also highlighted the healthy debt profile enjoyed by Liverpool.
"Liverpool is one of the most conservative non-food retailers, with adjusted retail leverage of 0.8x in the third quarter of 2018 and no short-term debt for 2019," it explained.
"The adjusted leverage range of Nordstrom, Macy's and M & S is between 2.7x and 3.3x, while Kohl's is 2.2x," the analysis compared.
The analysis series "Latam Spotlight: Credit Benchmark", by Fitch, compares the leading Latin American companies in emerging markets with their peers in developed markets.