S&P cuts Remy Cointreau

Standard & Poor's said it lowered its long-term corporate credit rating on Rémy Cointreau SA to BB- from BB and senior unsecured debt to BB- from BB. The outlook is stable.

S&P said the downgrade primarily reflects S&P's expectation that Rémy Cointreau's debt measures will not recover quickly enough to sustain a BB rating. In particular, Rémy Cointreau will have difficulty reaching 15% coverage of net adjusted debt by funds from operations by March 2006; at Sept. 30, 2004, the ratio was about 10%.

The ratings continue to reflect the group's aggressive financial profile, which is partially offset by its leading position in cognac, and a certain degree of business diversity (presence in spirits, liqueurs, and champagne), the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.