S & P lowers Carrefour rating after 2018 results

PARIS, March 22 (Reuters) – Standard & Poor’s downgraded Carrefour’s long-term credit rating from ‘BBB +’ to ‘BBB’ on Friday, citing weaker-than-expected annual results and restructuring costs weigh on margins and cash.

“While Carrefour has made good progress in the first year of its five-year transformation plan, we believe that fierce competition and additional restructuring costs will significantly impact its margins and cash flows during the first five years. next two years, “says S & P.

“The outlook is stable because we believe that the strong implementation of the transformation program will strengthen Carrefour’s position in the market and help it improve its adjusted Ebitda EBITDA margin to 5%.” in the medium term, “adds the agency.

Carrefour reported at the end of February a 33% fall in operating income in France in 2018, for a margin down 60 basis points to 1.3%.

Nevertheless, the distributor has recovered overall thanks to its performance in Brazil, while showing its confidence in the relevance of its strategic plan.