December 21, 2011
Fitch has lowered the outlook on Hypermarcas’ BB rating to negative from st
Fitch has lowered the outlook on Hypermarcas’ BB rating to negative from stable, it says. The Brazilian consumer products company’s leverage is the main problem, following a string of acquisitions. “The ratings are currently under pressure due to the company's weak operating results, high leverage levels, and execution risks related to the integration of several past acquisitions,” the agency says, noting concern about Hypermarcas’ ability to recover Ebitda generation and deleverage in 2012.