S&P rates Morrisons B+

S&P said it gave a preliminary B+ rating to Morrisons (Market Bidco). Clayton, Dubilier & Rice LLC and other minority partners acquired Morrisons' entire equity capital, via a new parent company Market Bidco.

“Post this transaction, the group has a highly leveraged capital structure, with S&P Global Ratings-adjusted debt to EBITDA of about 9.3x (7.8x excluding preferred equity [prefs]) for the last 12 months ended Jan. 31, 2022 (fiscal 2022). Market Bidco's final capital structure will comprise £5.6 billion in secured and unsecured debt, £1.3 billion in prefs provided by the minority shareholders, and about £2 billion of ordinary equity,” the agency said in a press release.

The outlook is stable, reflecting the view that over the next 12-24 months Morrisons will focus on restoring organic revenue growth and improving its profitability margins to about 6% through operating efficiency measures and synergies, and by reducing exceptional costs, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.