Elior: Moody's downgrades outlook to 'negative'
(CercleFinance.com) - Yesterday evening the rating agency Moody's announced that it had downgraded its outlook on Elior's debt to "negative", while maintaining its corporate rating for it at "B2".
Moody's said that it expects the catering and services group's free cash flow, excluding the Derichebourg transaction, to remain negative over the next 18 months.
The rating agency notes that, despite a target of returning to positive Ebitda by 2022/2023, continued inflationary pressures will probably put pressure on the company's profitability, leaving it with little leeway if profit margins deteriorate further.
Following these comments, Elior's share price was down about 1% on Friday morning on the Paris stock exchange, underperforming the SBF 120 index (down around 0.2%).
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