Moody’s trims Picard

Moody's Investors Service said it downgraded Picard Bondco SA's corporate family rating to B3 from B2 and its probability of default rating to B2-PD from B1-PD.

Moody's also affirmed Picard's senior unsecured notes rating at Caa1 and downgraded Picard Groupe SAS' senior secured notes rating to B3 from B2.

The outlook remains stable.

“We expect Picard's earnings to erode somewhat over the next two years because of changing consumer behavior and fierce competition in France,” Vincent Gusdorf, Moody’s vice president, senior credit officer and lead analyst for Picard, said in a news release.

“As a result, Picard will be unable to reduce its leverage, which increased significantly over the last two years because of payments to shareholders.”

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