(CercleFinance.com) – Elior’s stock on Monday suffered one of the most notable declines in the SBF 120 index following the downgrading of the group’s credit rating by Moody’s.
Around 9:45 am, the action of the restaurateur fell by 0.8% in a relatively stable Parisian stock market.
The financial rating agency Moody’s announced on Friday evening that it had lowered its corporate family rating (CFR) on Elior from ‘B2’ to ‘B3’, with an outlook still ‘negative’.
Moody’s justified this decision by the prospect of a more marked deterioration than initially expected in the company’s profitability over the next 12 to 18 months, due to continuing inflationary pressures.
According to the agency, the merger with Derichebourg Multiservices (DMS) should contribute favorably to the results, but not enough to offset the negative trend expected for the current financial year.
Moody’s indicates that it expects the company’s cash flow (FCF) to remain in the red at the end of the fiscal year which will close at the end of September, for the fourth consecutive year.
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