S&P cuts Kingfisher

S&P said it downgraded Kingfisher plc and its subsidiary Kingfisher International Products Ltd. to BBB- from BBB, citing the temporary closing its stores to help combat the coronavirus pandemic.

The agency placed the ratings on CreditWatch with negative implications.

“The downgrade reflects S&P Global Ratings’ view that Kingfisher’s sales, earnings and cash generation will decline sharply, for at least the rest of 2020. We anticipate that the Covid-19 pandemic will cause a substantial decline in nonfood sales in the U.K. and internationally because governments have mandated that shops selling nonessential goods should be closed,” S&P said in a press release.

In France and the U.K., the company’s stores are considered essential because they sell food. “At present, customers in these countries can shop for a range of essential goods online, for home delivery or for click and collect from store locations,” S&P said.

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