Rexel: Moody's raises outlook to 'positive'
(CercleFinance.com) - On Thursday Moody's Investors Service confirmed its "Ba2" rating for Rexel shares, while raising its outlook from "stable" to "positive".
The rating agency justifies its upgrade by the upside potential in the French electrical equipment distributor's results over the next 12 to 18 months.
Moody's predicts that this momentum should enable the group to reduce its adjusted debt/EBITDA ratio to around 2.5x (vs. 3x at the end of last year).
These details could justify an upgraded "Baa1" rating, the agency adds, although warns that Rexel is exposed to a slowdown in economic growth due to its positioning in the construction and renovation markets.
Rexel shares are currently up about 2.2% in Paris, slightly outperforming the SBF 120 index.
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