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Research Update: Metro AG 'BBB+/A-2' Ratings On CreditWatch Negative On Tough Operating Environment Mar 09 Product Image

Research Update: Metro AG 'BBB+/A-2' Ratings On CreditWatch Negative On Tough Operating Environment Mar 09

  • Published: March 2009
  • Standard & Poors

FEATURED COMPANIES

  • Metro AG
  • Metro Euro-Finance B.V.
  • Metro Finance B.V.
  • MORE

Abstract
On March 27, 2009, Standard & Poor's Ratings Services placed its 'BBB+' and 'A-2' long- and short-term corporate credit ratings on Germany-based diversified retailer Metro AG on CreditWatch with negative implications. The CreditWatch placement reflects that the tough economic environment will likely delay Metro's achievement of financial metrics commensurate with a 'BBB+' rating, namely funds from operations (FFO) to debt of 25%, and net debt to EBITDAR (earnings before interest, taxes, depreciation, amortization, and rents) of 2.5x. Although the group reported resilient performance in 2008, disappointing like-for-like sales figures in the fourth quarter indicate softening market conditions, which will slow Metro's improvement of its financial metrics in 2009. These could still be boosted if Metro divests its department store, Kaufhof,...

Companies mentioned in this report are:
- Metro AG
- Metro Finance B.V.
- Metro Euro-Finance B.V.

Action: On CreditWatch:Negative

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and READ MORE >

- Metro AG
- Metro Finance B.V.
- Metro Euro-Finance B.V.

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