Chile’s Banco Falabella Upgraded

Chilean Banco Falabell has been upgraded to AA from AA minus on a national scale with a stable outlook by Fitch. The upgrade is a result of the upgrade of parent company, Chilean retailer Falabella. The reason for the upgrade is due to a significant recovery in 2010 and the beginning of 2011. The reduction in costs as well as the expansion of its credit portfolio to a wider range of clients contributed to the change in rating. In 2011 the level of risk in the consumer industry in Chile is also expected to fall, which Fitch says will also have a positive impact on the company.