The European credit standing agency Scope Ratings GmbH has not too long ago carried out a new evaluation of the French retailer’s debt construction, so as to assess and replace its danger profile.
The retail group headed by Jean-Charles Naouri obtained slightly constructive scores, contemplating the retail’s market total performances in 2021. Such an enchancment seems probably to improve the market’s notion of the French group.
Meaning and stakes of Scope Rating’s analysis of the Casino group
Casino Guichard-Perrachon SA and its subsidiary Quatrim SAS therefore obtained a BB-/Stable issuer rating, and its senior secured debt has been rated BB. The aforementioned BB- grade has sparked some consideration in the monetary world. It is certainly (respectively) two and three grades forward of the scores issued by the American corporations Standards & Poor’s and Moody’s relating to the Casino group. The score scale utilized by specialised corporations similar to Scope Ratings, Moody’s, or S&P certainly ranks from AAA (absolute best grade) to C or D (which suggests default).
An issuer score goals at evaluating the reliability of a firm issuing bonds (which is the case of most main corporations). The goal is to assess the danger degree, specifically the chance of default (money owed left unpaid) of the analysed entity. The time period “senior debt” refers to the money owed that have to be repaid first if a given firm goes out of enterprise.
Scope Ratings additionally issued a B+ grade to the Casino group’s unsecured senior debt, and a B- grade to its perpetual subordinated debt (hybrid). The latter time period refers to debt that continues indefinitely and has no maturity date. Moreover, the French retailer’s brief time period debt (monetary obligations anticipated to be paid off inside a 12 months) was rated S-3.
An encouraging signal for the Casino group
The grades issued by Scope Ratings relating to the group headed by Jean-Charles Naouri seem slightly favorable and inspiring contemplating the French retailer’s historical past in the matter. The european credit standing firm, which has a exact imaginative and prescient of the retail market’s specificities and stakes in europe, certainly said that “the Casino group’s danger profile is supported by a constant geographic diversification”. Scope Ratings therefore described the French group’s danger profile as “qualitative” and praised its “low monetary danger”. The latter will be defined by a excessive combination company leverage and a low free cash-flow technology.
Beyond the Casino group, Scope charges a number of gamers of the retail market, similar to Fnac-Darty, Metro or Ceconomy, in addition to corporations lively in very completely different enterprise branches, similar to Sanofi.