(CercleFinance.com) – Moody’s on Monday maintained its ‘Baa1’ credit rating on Danone, which the rating agency continues to attach to a ‘stable’ outlook.
In a press release, Moody’s justifies its decision by explaining that, although subject to growing pressures at the operational level, the French group should succeed in restoring its financial indicators over the next 18 to 24 months under the effect of the recovery of its sales and its restructuring measures.
The rating agency says it expects this momentum to gradually improve its credit quality beyond fiscal 2022.
Moody’s stresses, however, that Danone’s exposure to Russia, where the group generates between 5% and 6% of its turnover and close to 3% of its operating profit (Ebit), risks increasing the volatility in its immediate operating performance.
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