Moody's downgrades Atalian

Moody's Investors Service said it downgraded the ratings of La Financiere Atalian SAS. including the corporate family rating to Caa1 from B3, the probability of default rating to Caa1-PD from B3-PD and the ratings on the senior notes to Caa2 from Caa1. The outlook remains negative.

"The downgrade of Atalian's ratings mainly reflects the sustained negative free cash flow in 2019, and a limited liquidity buffer in our view to cushion the impact of confinement measures across its largest markets," said Eric Kang, a Moody's vice president, senior analyst and lead analyst on Atalian, in a press release.

"The outlook remains negative because the company's liquidity could be further pressured if confinement measures extend beyond the second quarter of 2020, or if it is not successful in securing new credit lines to support liquidity. More positively, we expect the company to benefit from additional level of activity following the end of the lockdown period although it is difficult to forecast to which extent at this stage," added Kang.

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