Connect with us

Hi, what are you looking for?

Editor’s Pick

Scope Ratings assigns a BB-/stable grade to the Casino group

The European credit rating firm Scope Ratings GmbH has recently conducted a new analysis of the French retailer’s debt structure, in order to assess and update its risk profile.

The retail group headed by Jean-Charles Naouri obtained rather positive ratings, considering the retail’s market overall performances in 2021. Such an improvement appears likely to enhance the market’s perception of the French group.

Meaning and stakes of Scope Rating’s evaluation of the Casino group

Casino Guichard-Perrachon SA and its subsidiary Quatrim SAS hence received a BB-/Stable issuer rating, and its senior secured debt has been rated BB. The aforementioned BB- grade has sparked some attention in the financial world. It is indeed (respectively) two and three grades ahead of the ratings issued by the American firms Standards & Poor’s and Moody’s regarding the Casino group. The rating scale used by specialized firms such as Scope Ratings, Moody’s, or S&P indeed ranks from AAA (best possible grade) to C or D (which means default).

An issuer rating aims at evaluating the reliability of a company issuing bonds (which is the case of most major firms). The objective is to assess the risk level, namely the possibility of default (debts left unpaid) of the analysed entity. The term “senior debt” refers to the debts that must be repaid first if a given company goes out of business.

Scope Ratings also issued a B+ grade to the Casino group’s unsecured senior debt, and a B- grade to its perpetual subordinated debt (hybrid). The latter term refers to debt that continues indefinitely and has no maturity date. Moreover, the French retailer’s short term debt (financial obligations expected to be paid off within a year) was rated S-3.

An encouraging sign for the Casino group 

The grades issued by Scope Ratings regarding the group headed by Jean-Charles Naouri appear rather favorable and encouraging considering the French retailer’s history in the matter. The european credit rating company, which has a precise vision of the retail market’s specificities and stakes in europe, indeed stated that “the Casino group’s risk profile is supported by a consistent geographic diversification”. Scope Ratings hence described the French group’s risk profile as “qualitative” and praised its “low financial risk”. The latter can be explained by a high aggregate corporate leverage and a low free cash-flow generation.

Beyond the Casino group, Scope rates several players of the retail market, such as Fnac-Darty, Metro or Ceconomy, as well as companies active in very different business branches, such as Sanofi.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Editor’s Pick

UK taxpayers could have to pay as much as £1bn in compensation to former Post Office workers wrongly convicted of theft due to the...

Editor’s Pick

More than eight in ten mid-sized businesses in the UK experienced fraud in 2021, up from 60 per cent the year before, research has...

Editor’s Pick

Ambition to grow has exceeded pre-pandemic levels among small businesses but they are being held back by rising costs, skills shortages and a lack...

Editor’s Pick

Poor parental leave policies have led one in five younger workers to quit their job, a survey has found. A poll of more than...

Editor’s Pick

Investors seeking to benefit from the UK holiday market are snapping up British country house hotels with £600 million worth of independent UK hotels...

Editor’s Pick

The deputy prime minister has defended the planned rise in national insurance contributions in April, despite criticism from senior backbenchers. Dominic Raab, the deputy...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

Editor’s Pick

London has beaten off competition from Paris and Berlin to become the highest ranked European city for property investment, according to a survey...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.