Fitch changes Morrisons view to positive

Fitch Ratings said it revised the outlook on Market Holdco 3 Ltd.'s (Morrisons) long-term issuer default rating to positive from stable and affirmed the IDR at B. Fitch has placed Morrisons' senior secured instrument ratings on rating watch positive.

“The outlook revision is driven by the announced £2.5 billion disposal of Morrisons' petrol forecourts business (PFS), with £1.8 billion net cash proceeds expected to be applied to debt reduction upon the completion of the transaction. This will lead to a more certain deleveraging path and slightly lower leverage compared with our previous forecast, reaching around 6x by FY25. However, this remains subject to execution risk for profit growth,” Fitch said in a press release.

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