PARIS, May 9 (Reuters) – Standard & Poor’s said on Tuesday it had cut the long-term credit rating of French retailer Casino further into junk status and placed all its ratings on Credit Watch with negative implications, citing restructuring risk and weak liquidity.
The action is a fresh blow for the heavily indebted group, which last week reported that sales growth slowed in the first quarter, Dutawin88 fuelling concerns over its ability to generate cash.”The group’s weak operating performance, fragile liquidity position, and unsustainable capital structure, make a default, distressed exchange, or redemption appear inevitable within six months, absent unanticipated and significantly favorable changes in the issuer’s circumstances,” S&P said in a statement.
S&P said it thus lowered its long-term issuer credit ratings on Casino to “CCC-minus from “CCC-plus,” and its issue ratings on its senior secured debt to “CCC” from “B-minus,” its senior unsecured debt to “CC” from “CCC-plus,” and its hybrid instruments to “C” from “CC.” It placed all the ratings on CreditWatch Negative.
Casino is holding its annual shareholders meeting on May 10.
(Reporting by Dominique Vidalon; Editing by Leslie Adler)
