Moody’s ups KKR Retail to positive

Moody's Investors Service said it affirmed the B2 corporate family rating and B1-PD probability of default rating of KKR Retail Partners Midco Sarl.

Concurrently, the agency affirmed the B3 instrument rating on the €290 million senior secured notes due 2020 issued by SMCP SAS.

The outlook on all ratings was revised to positive from stable.

Moody’s said the outlook change reflects the strong performance recorded in the first nine months of 2015, during which period KKR Retail has continued to record significant overall sales growth, fuelled by ongoing expansion of its points of sale network, and an acceleration in like-for-like sales.

Profit margins have increased as overheads have been contained (central functions were augmented in 2014, both at head office and within regional hubs).

Accordingly, since the end of 2014, trailing 12-month reported EBITDA grew by more than 35% and Moody's adjusted leverage fell materially to 4.1 times as of Sept. 30 from 5 times.

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