Santiago, Chile, July 2 – Feller Rate upgraded the issuer credit rating and bond program rating of Falabella S.A. from AA- to AA, with a Stable Outlook, and upgraded its share rating from First Class Level 2 to First Class Level 1. The decision reflects the Company’s sustained strengthening of its financial position over recent years, driven by stronger cash flow generation and a financial strategy focused on deleveraging and reinforcing liquidity.

In its report, the agency highlighted the recovery and diversification of Grupo Falabella earnings sources, noting the increased contribution from its real estate and banking operations, which provide greater stability to the Company’s consolidated profile. Feller Rate also emphasized that the combination of stronger operating cash generation, high cash balances, and lower net financial debt has led to a significant improvement in leverage, coverage, and liquidity metrics, placing them within ranges consistent with a solid financial position.

“This upgrade recognizes tangible progress in our financial management, particularly in debt reduction, liquidity, and cash generation. Maintaining this discipline is key for us, as it provides greater flexibility to support the Group’s growth with a strong capital structure,” said Juan Pablo Harrison, Grupo Falabella Corporate Administration and Finance Manager.

At the same time, Feller Rate upgraded Banco Falabella’s issuer credit rating from AA to AA+, with a Stable Outlook, while also improving the ratings of its publicly offered instruments. The rating agency highlighted the bank’s strong financial performance, growing returns, ability to expand its operations, progress in customer growth and diversification, as well as its broad depositor base.

Falabella Group’s new rating follows recent international assessments, after Fitch Ratings and S&P Global Ratings assigned the Company investment-grade status. This further strengthens Falabella’s financial position as it executes its growth strategy, enhances its technological and commercial capabilities, and continues to capture long-term opportunities.