LVMH: Moody's maintains ratings after Tiffany takeover
(CercleFinance.com) - Moody's confirms its "A1" long-term and "P-1" short-term credit ratings for LVMH, with a "stable" outlook, after the French luxury giant's announcement of its acquisition of the US jeweler Tiffany, for an enterprise value of 16.
9 billion dollars.
While it recognizes that this acquisition will increase LVMH's debt, the rating agency thinks that " its credit ratios will subsequently recover thanks to earnings growth and robust cash flow generation".
"LVMH will acquire the prestigious Tiffany brand, which benefits from global recognition and caters to a wide range of customers ranging from upper income customers to very high net worth individuals," Moody's adds.
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9 billion dollars.
While it recognizes that this acquisition will increase LVMH's debt, the rating agency thinks that " its credit ratios will subsequently recover thanks to earnings growth and robust cash flow generation".
"LVMH will acquire the prestigious Tiffany brand, which benefits from global recognition and caters to a wide range of customers ranging from upper income customers to very high net worth individuals," Moody's adds.
Copyright (c) 2019 CercleFinance.com. All rights reserved.