Carrefour: Moody’s confirms its rating

(Boursier.com) — Crossroads advances 1.8% to 16.2 euros this weekend. Moody’s has affirmed the distributor’s long-term issuer rating at ‘Baa1’. The outlook remains ‘stable’. This confirmation reflects Moody’s expectations that adjusted (gross) debt/EBITDA, which increased to 3.5x in 2023, will decline to 3.0x over the next 12 to 18 months, reflecting the acquisition of 60 Cora hypermarkets and 115 Match supermarkets in France, pre-financed in 2023 and integrated in 2024, and the ramp-up of 129 stores transformed and reopened in Brazil in 2023 following the acquisition of GrupoBIG in 2022.

Moody’s also expects FCF and EBITDA margin to improve over the next three years as the company realizes cost savings and implements its growth initiatives under its strategic plan 2026, generates synergies from recent acquisitions and continues to grow organically and through targeted acquisitions in its key geographies.