CHILE –     International credit 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.

In its report, Fitch highlighted the company’s strong progress in improving operational profitability and reducing debt. Grupo Falabella achieved an EBITDA margin of 15% during the first half of 2025, supported by efficiency gains across its regional operations. Meanwhile, the net financial debt-to-EBITDA ratio stood at 1.9x at the end of the second quarter—an impressive recovery from 8.2x when the company’s rating was downgraded in November 2023.

“This change reflects the solid momentum of Grupo Falabella and reaffirms our ability to keep growing, the resilience of our business model, and the dedication of our teams across all countries where we operate,” said Alejandro González, CEO of Grupo Falabella. “The upgrade is the result of sustained efforts to strengthen our financial position, optimize operations, and continue creating value for customers, employees, investors, and communities. We will continue to work responsibly and with long-term vision, seeking growth opportunities throughout the region.”

In the second quarter of 2025, the company reported profits of USD 390 million, bringing total earnings for the first half to USD 596 million, a 221% increase compared with the same period last year.

Grupo Falabella’s CFO, Juan Pablo Harrison, noted that “this swift rating recovery reflects the company’s solid and consistent financial position over time, supported by disciplined management, strong cost control, improved cash generation, and a sound capital structure.”

In addition, S&P Global Ratings improved the company’s outlook from “negative” to “stable”, citing stronger operating performance and a recovering consumer environment, further validating Falabella’s financial and commercial strategy.