Moody’s revises Sodexo view to negative

Moody’s Investors Service said it revised its outlook for Sodexo SA to negative from stable and affirmed the Baa1 ratings on the backed senior unsecured notes due April 2026 and April 2031 that were issued by Sodexo Inc.

On Tuesday, Sodexo SA announced that its shareholders approved the spinoff of Pluxee NV. The company completed the spinoff on Thursday.

"The affirmation of the rating at Baa1 reflects our view that Sodexo's business profile will remain strong after the spin-off, while the company is committed to reducing its net debt/ EBITDA ratio to the targeted range of 1x-2x over the medium term," said Sarah Nicolini, a Moody's vice president, senior analyst and lead analyst for Sodexo, in a press release.

"However, the negative outlook reflects our expectation that Sodexo's credit metrics will be weak for the current Baa1 rating over the next one to two years, leaving limited headroom for deviation in terms of operating performance, in the absence of absolute gross debt reduction," Nicolini added.

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