What: Fitch Ratings upgraded Grupo Falabella's international credit rating to BBB from BBB- with a stable outlook, and raised its national rating and Sodimac's to AA(cl) from AA-(cl).

Why it is important: The upgrade shows that a diversified retail ecosystem, combined with margin discipline, can turn a credit downgrade into a sustained investment-grade trajectory within three years.

Fitch Ratings has raised Grupo Falabella's international risk rating to BBB from BBB-, with a stable outlook. The agency also lifted the long-term national rating of the group and Sodimac to AA(cl) from AA-(cl), and reaffirmed the rating of the company's shares at Primera Clase Nivel 1(cl).

According to Fitch, the upgrade reflects the group's strategy to strengthen its business and financial profile, supported by a solid market position, diversified operations and improved margins. These factors have allowed Falabella to accumulate cash, reduce debt and lower its leverage.

CEO Alejandro González Dale described the decision as recognition of consistent strategy execution and higher profitability, adding that the group is well placed to deepen ecosystem synergies and pursue new opportunities. CFO Juan Pablo Harrison pointed to stronger cash generation, a sustained reduction in indebtedness and disciplined resource management, noting that liquidity and a well-structured debt maturity profile give the company flexibility to finance its investment plan.

The upgrade follows record 2025 results, with net income excluding the fair-value accounting effect of US$897 million and EBITDA of US$2,144 million, up 34% on 2024. So far in 2026, net income totals US$497 million, up 17.9% on the first half of 2025.

IADS Notes: Fitch's move to BBB comes a year after the agency restored Falabella's investment grade at BBB-, following a reduction in the debt-to-EBITDA ratio from 8.2 to 1.9 times within eighteen months (Perú Retail, October 2025). Record 2025 results have since reinforced that deleveraging, with revenue up 9% and EBITDA up 34% on tighter inventory management and cost control (Modaes, February 2026). So has S&P Global Ratings' own upgrade to investment grade, which cited EBITDA margins of 14.6% and the resilience of the group's diversified model across retail, home improvement, shopping malls and banking (Press Release, April 2026). The financial flexibility Fitch highlights now supports a 40% increase in annual investment to $900 million in 2026, covering 17 new stores, store and mall remodels, and technology upgrades (Modaes, January 2026).

Fitch upgrades Grupo Falabella's rating to BBB