Fitch shifts Picard view to negative

Fitch Ratings said it changed Picard Bondco SA’s outlook to negative from stable due to markedly slower deleveraging prospects than expected that’s driven by a decline in funds from operations generation capacity.

“Picard has faced mounting competitive pressure from the rapid growth of some competitors, including organic-food retailers in France, as well as higher operating costs. Although refinancing needs are still far ahead, we see increasing pressure on the rating if the company is unable to show a deleveraging path and a robust free cash flow (FCF) generation capacity enabling a smooth refinancing process,” said Fitch in a press release.

Fitch also affirmed Picard’s B rating as well as all ratings for debt instruments issued from Picard Group SAS and Picard Bondco.

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