Fitch lowers Kingfisher view to negative

Fitch Ratings said it revised the outlook on Kingfisher plc's long-term issuer default rating to negative from stable and affirmed the issuer default rating and senior unsecured ratings at BBB.

The short-term issuer default rating also was affirmed at F2.

The negative outlook reflects an expectation of weak profitability and decreasing like-for-like sales in France over the next two years, impeding any meaningful improvement in Kingfisher's profitability through to 2021, Fitch said.

The ratings are supported by Kingfisher's good market position in mature markets, geographic diversification and sound financial structure, the agency said.

The company has improved its working capital management in the last year following a sharp outflow in the financial year ending January 2018, Fitch said.

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