Fitch Ratings has revised South Africa-based consumers goods group Steinhoff International Holdings Limited's (Steinhoff) Outlook to Stable from Negative.
Its National ratings have been affirmed at Long-term 'A-(zaf)' and Short-term 'F2(zaf)'. Fitch has also affirmed Steinhoff Services' senior unsecured debt rating at 'A-(zaf)'.
The change in Outlook reflects Fitch's expectation that Steinhoff's financial profile will improve in the short- to medium-term as the group focuses on organic growth following previous large scale capex and acquisition activity.
In its rating analysis, Fitch deconsolidates JD Group Ltd from Steinhoff's financial profile in view of weak operational links between JD Group and its controlling shareholder and the fact that all JD Group debt is on a non-recourse basis to Steinhoff.
