Moody's assigns Ba2 rating to B&M's new notes; outlook stable

(Alliance News) - Moody's Investors Service on Monday assigned a Ba2 rating to B&M European Value ...

Alliance News 17 November, 2021 | 6:54AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Moody's Investors Service on Monday assigned a Ba2 rating to B&M European Value Retail SA's new proposed GBP250 million seven-year backed senior secured notes due 2028.

The Luxembourg-headquartered retailer said it intends to use money raised from the notes for general corporate purposes and to pay fees and expenses incurred in connection with the offering.

B&M noted that SSA Investments Sarl - which is beneficially owned by B&M Chief Executive Simon Arora and associates Bobby Arora and Robin Arora - intends to purchase 22.5% of the notes. Settlement of the transaction is expected to take place on or about November 24.

The ratings agency said B&M's current Ba2 corporate family rating and stable outlook are unaffected by the planned issuance.

B&M's Ba2 corporate family rating reflects the FTSE 100-listed company's focus on fast-growing retail niche markets, good scale, low-cost propositions and above-average profitability compared with traditional retailers.

"The Ba2 rating on the backed senior secured notes, in line with the corporate family rating, reflects the pari passu capital structure," Moody's said.

The outlook on B&M's rating is stable and reflects Moody's expectations that the company's profitability, cash flow generation and leverage will remain around current levels over the next 12-18 months.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
B&M European Value Retail SA 529.60 GBX 1.53 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures