Moody's turns Rexel outlook to positive

Moody's Investors Service said it changed the outlook for Rexel SA to positive from stable and affirmed its ratings, including its Ba3 rating on the senior unsecured notes due 2028.

"The outlook change to positive from stable reflects our expectation that Rexel's earnings will continue improving over the next 12-18 months, leading to Moody's-adjusted debt/EBITDA reducing to around 2.5x from 3x at year-end 2021 and Moody's-adjusted retained cash flow/debt remaining at around 20%," said Eric Kang, a Moody's vice president, senior analyst and lead analyst for Rexel, in a press release.

"However, there are downside risks to our base case forecasts notably weaker economic growth because of Rexel's exposure to construction and renovation activity," Kang added.

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