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Fitch rates Ocado BB-, notes BB
Fitch Ratings said it assigned a long-term issuer default rating of BB- to Ocado Group plc.
The outlook is stable.
The agency also assigned an expected rating of BB(EXP) to its planned £200 million seven-year senior secured guaranteed bond.
Fitch said the BB- issuer default rating reflects Ocado's favorable market position and competitive advantages as a pure-play online grocery retailer, despite its small scale and the strong competition in food markets in the U.K.
A lean cost base supports the group's profitability as reflected in solid EBITDAR and FFO margins.
These are in line with the ratings, but are counterbalanced by a negative FCF margin, due to current and committed investments to support its distribution platform in 2017 and 2018, the agency explained.
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