Elior: Moody's adopts negative outlook on group's debt
(CercleFinance.com) - The credit rating agency Moody's yesterday downgraded its outlook for Elior's debt from stable to "negative".
In detail, after making a number of "warnings", the French catering group's rating remains at "Ba2" - at least for now.
The outlook associated with this rating suggests that there may be a downgrade in the short or medium term. Elior's credit ratios will remain weak to justify such a rating over the next 12 to 18 months, Moody's argues. The rating agency also believes that the implementation of the strategic plan to improve group profitability and cash generation involves "high execution risks".
This is despite Elior's profile being considered "robust" - in particular due to its position in "globally stable" end markets and growth prospects in the US.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
In detail, after making a number of "warnings", the French catering group's rating remains at "Ba2" - at least for now.
The outlook associated with this rating suggests that there may be a downgrade in the short or medium term. Elior's credit ratios will remain weak to justify such a rating over the next 12 to 18 months, Moody's argues. The rating agency also believes that the implementation of the strategic plan to improve group profitability and cash generation involves "high execution risks".
This is despite Elior's profile being considered "robust" - in particular due to its position in "globally stable" end markets and growth prospects in the US.
Copyright (c) 2018 CercleFinance.com. All rights reserved.