Fitch revises Metro to negative

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

The agency also affirmed the unsecured rating of the notes issued by Metro Finance BV at BBB-. Metro AG guarantees the notes.

Fitch said the negative outlook reflects uncertainty over the improvement in Metro's financial metrics over the medium-term, absent of further significant cash preservation measures as the financial metrics are already weak for the current issuer default rating.

In the agency’s view, management's ability to successfully execute on its turnaround plan, resulting in a significant improvement in profit generation will be a key factor behind Metro's ratings over the next two years. Further negative developments in Metro's major Russian operations and increased competition in other markets where Metro operates could compromise the group's recovery, Fitch said.

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