NEW YORK - (Business Wire) Fitch Ratings has upgraded the ratings of the Chilean retailer Distribucion y Servicios S.A.'s (D&S) guaranteed debt securities as follows: --Series 13, 14, and 15, registered under Lineas de Efectos de Comercio No.011 to 'AAA(cl)' from 'AA-(cl)';
--Series C bonds, registered under Securities Registry No. 350, to 'AAA(cl)' from 'AA-(cl)';
--Series E bonds, registered under Securities Registry No. 492, to 'AAA(cl)' from 'AA-(cl)'.
Fitch's rating action follows the execution of an unconditional and irrevocable guaranty by D&S's controlling shareholder, Wal-Mart Stores, Inc. (rated with an IDR of 'AA', with a Stable Outlook, by Fitch), in consideration for the removal of all financial covenants contained in all of D&S's outstanding public debt securities by the holders of these debt securities. D&S announced the simultaneous execution of the guarantee and removal of the financial covenants contained in the debt securities described above on Oct. 30, 2009.
Fitch's ratings of D&S's IDRs as well as any remaining non-guaranteed debt of D&S will continue to be rated as follows until Fitch completes a full review of the company's standalone credit quality, and the ratings remain on Rating Watch Evolving:
--Foreign currency Issuer Default Rating (IDR) of 'BBB';
--Local currency IDR of 'BBB';
--Long-term national scale rating of 'AA-(cl)';
--Short-term national scale rating of 'F1+(cl)'.
Additional information is available at www.fitchratings.com.
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Fitch Ratings
Jose Vertiz, +1-212-908-0641 (New York)
Andrea Jimenez, +562-499-3322 (Santiago)
or
Brian Bertsch, +1-212-908-0549
(Media Relations, New York)
brian.bertsch@fitchratings.com
