Moody’s cuts Hornbach, revises view to negative

Moody's Investors Service said it downgraded the corporate family and probability of default ratings for Hornbach Baumarkt AG to Ba3 from Ba2 and Ba3-PD from Ba2-PD, respectively.

The agency affirmed the Ba2 rating on the Hornbach’s €250 million of senior notes.

“Today’s downgrade to Ba3 reflects Hornbach's higher-than-expected gross adjusted debt, which will increase Moody's gross adjusted leverage to around 5.5x in fiscal 2019, substantially higher than the 4.0x Moody's anticipated,” said Moody’s in a press release.

The agency revised the outlook for Hornbach to negative from stable. Moody’s said it sees the company’s leverage rising to 5.5x in fiscal 2019.

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