International rating agency Fitch Ratings has upgraded Grupo Falabella’s credit rating to BBB- with a stable outlook, restoring the company’s investment grade status after two years. The decision was based on consistent improvements in profit margins, lower debt levels, and strong liquidity generation.
Fitch noted that Grupo Falabella achieved an EBITDA margin of 15% in the first half of 2025, reflecting broad operational improvements across its regional businesses. The company’s net financial debt to EBITDA ratio decreased to 1.9x at the end of the second quarter of 2025, compared to 8.2x when the rating was downgraded in November 2023.
Alejandro González, CEO of Grupo Falabella, commented: “This change reflects the strong momentum of Grupo Falabella and confirms our ability to continue growing, the resilience of our business model, and the commitment of our teams in every country where we operate. The rating upgrade is the result of sustained efforts to strengthen our financial position, optimize operations, and continue creating value for our customers, employees, investors, and communities. We will keep working responsibly and with long-term vision, seeking opportunities across the region.”
In the second quarter of this year, Grupo Falabella reported profits of US$390 million and accumulated US$596 million in earnings for the first half—an increase of 221% over the same period last year.
Juan Pablo Harrison, CFO of Grupo Falabella said: “This rapid rating recovery acknowledges that our financial position is solid and consistent over time, reflecting disciplined management, strong expense control, improved cash generation, and a robust capital structure.”
S&P Global Ratings also revised its outlook on Grupo Falabella from “negative” to “stable,” citing better operational performance and a recovery in consumer demand as factors supporting both its financial standing and commercial strategy.
