Fitch revises WD FF view to negative

Fitch Ratings has revised WD FF Ltd.'s (Iceland; previously Lannis Ltd.) outlook to negative from stable, while affirming the food retailer's long-term issuer default rating at B.

“The outlook change reflects our view that normalized trading after pandemic's peak and cost inflation will combine to erode EBITDA and exhaust rating headroom that had been tightened by cash funding of Iceland's share purchase and other non-core investments. This, together with refinancing leading to £60 million incremental debt and assumed lower debt prepayments, will drive leverage above 7.5x over the next 24 months, which if maintained, would signal heightened refinancing risks and a lower rating,” the agency said in a press release.

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