European food retailers' expansion strategy to put pressure on ratings - Fitch |
|
|
|
Published
:
Fri, 20 Apr 2007 14:49
|
LONDON (Thomson Financial) - Fitch Ratings said European food retailers' expansion strategies will continue to put pressure on their financial flexibility and ratings, partly due to increased capital investment.'Further M&A in overseas portfolios can be expected this year as shareholders are putting pressure on food retailers to grow or to extract value either by increasing share buybacks or realising value from their real estate. However, companies still need funds to finance their international expansion', said Johnny Da Silva, director in Fitch's European Retail team.Fitch also said investing overseas does not give instant profits and in some eastern European countries, overseas food retailers' margins still remain lower than those of their core market.Fitch said after reviewing most of the main European food retailers with those overseas, including Ahold, Auchan, Carrefour, Casino and Tesco, it noted that while international expansion benefits diversification, it may take many years for financial returns to materialise.TFN.newsdesk@thomson.comypv/pcm/jagCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
|
|
|
|
Print this Story
Fitch affirms Region of Ile-de-France's ratings at 'AAA' 