Moody’s snips Isabel Marant

Moody's Investors Service said it downgraded the corporate family rating IM Group SAS, the owner of Isabel Marant, to B3 from B2. Moody's also downgraded the company's probability of default rating to B2-PD from B1-PD and the instrument rating on the €265 million of senior secured notes due 2028 to B3 from B2.

"Today's downgrade reflects the company's weak results in the first nine months of the year and more shareholder-friendly financial policy, which translate into weak credit metrics and negative free cash flows for 2023," said Guillaume Leglise, a Moody's vice president, senior analyst and lead analyst for IM, in a press release.

"Given subdued consumer sentiment and a softer wholesale order book, we expect the company's sales and earnings to take time to recover, possibly from the second half of 2024," Leglise added.

The outlook remains stable.

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