Fitch rates Decomeubles notes B

Fitch Ratings said it assigned Decomeubles Partners SAS an expected long-term issuer default rating of B-(EXP) with a stable outlook.

The agency also assigned 100% subsidiary BUT SAS' prospective €170 million senior secured notes due 2019 an expected rating of B(EXP)/RR3.

The notes are rated one notch above the issuer default rating, reflecting above-average recovery prospects.

Fitch said the B-(EXP) issuer default rating reflects Decomeubles’ concentration on the French home improvement retail market that is characterized by weak macroeconomic fundamentals and by competitive pressures in the consolidating higher-value end of the market, as well as its large size, strong market position and brand.

With limited organic growth opportunities, the ratings assume continued investment in the expansion of the Decomeubles store network to protect market share and to grow sales and profitability, the agency said.

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