S&P changes Kingfisher outlook

S&P said it revised its outlook on Kingfisher plc to negative from stable and affirmed the long-term issuer credit rating and issue rating on Kingfisher's senior unsecured debt at BBB.

The agency also affirmed the A-2 short-term rating on Kingfisher and Kingfisher International Products Ltd.

S&P said the revision reflects that the agency could consider a downgrade in the next 12-24 months amid the elevated risk that Kingfisher's free operating cash flow generation will remain weak.

“As Kingfisher rolls out its unified IT platform and centralizes its supply chain and distribution, we foresee high transformation-related costs and capital expenditure (capex) exacerbating the risk of cash flow remaining subdued over the next 24 months,” the agency said in a news release.

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