S&P revises Legrand to negative

S&P said it revised the outlook on Legrand SA to negative from stable and affirmed its A-/A-2 long- and short-term corporate credit ratings and the A- issue ratings on its debt.

S&P said the outlook revision reflects its view that, following Legrand's acquisition of Milestone, the group's leverage will increase in 2017 significantly beyond the previous base-case expectations, and that the group's credit metrics may not recover to the levels commensurate with the current A- rating over the course of 2018-2019.

To finance this and acquisitions made earlier this year, Legrand plans to incur about €1.6 billion in new debt, including €1 billion in bonds and drawing on its revolving credit facility and commercial papers, the agency explained.

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