Moody's lowers Rexel view to negative

Moody's Investors Service said it changed the outlook on Rexel SA's ratings to negative from stable.

Moody's also affirmed Rexel's Ba2 corporate family rating, Ba2-PD probability of default rating and the Ba2 ratings on the company's senior unsecured notes due December 2016, 2018 and 2019.

The outlook change reflects Rexel's weaker-than-expected credit metrics as of December 2012 with limited prospects for meaningful recovery in 2013, given the difficult macroeconomic environment and the late-cycle nature of Rexel's business, Moody's said.

The revision also considers some uncertainty as to the level of future free cash flow generation, considering its level of cash dividends in conjunction with ongoing mergers and acquisitions activity, the agency said.

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