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.
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