Fitch: Remy Cointreau view negative

Fitch Ratings said it revised the outlook on Remy Cointreau SA to negative from stable and affirmed its long-term issuer default rating and senior unsecured rating at BBB-.

Fitch said the outlook revision reflects increasing uncertainty following the departure of two key managers about the company's ability to handle the present trading headwinds in its core market of China.

Although the degree of sales and profit contraction Fitch forecasts for the 2014 fiscal year is less severe than in the shock case it assessed when it assigned a BBB- rating in July 2013, there is currently no visibility for market dynamics beyond 2014.

The agency now expects fiscal year 2014 leverage to reach the top end acceptable for the rating, leaving limited headroom for further deterioration.

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