Metro: Moody's places rating under review for downgrade
(CercleFinance.com) - Credit ratings agency Moody's Investors Service said it has placed the rating of Metro under review for a downgrade, after Czech billionaire Daniel Kretinsky launched a bid for the German retailer.
The review reflects the possibility that Metro's credit quality may deteriorate substantially in case Kretinsky takes control of the supermarket group, possibly leading to a downgrade of two notches or more, Moody's said.
According to the offer document, Kretinsky and his partners have obtained commitments from banks for 4.9 billion euros of loans and for 1 billion euros of revolving credit facilities.
Moody's has a "Ba1" corporate family rating (CFR) on Metro.
The shares of the retailer are currently down 0.7% in Frankfurt.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The review reflects the possibility that Metro's credit quality may deteriorate substantially in case Kretinsky takes control of the supermarket group, possibly leading to a downgrade of two notches or more, Moody's said.
According to the offer document, Kretinsky and his partners have obtained commitments from banks for 4.9 billion euros of loans and for 1 billion euros of revolving credit facilities.
Moody's has a "Ba1" corporate family rating (CFR) on Metro.
The shares of the retailer are currently down 0.7% in Frankfurt.
Copyright (c) 2019 CercleFinance.com. All rights reserved.