Moody's may upgrade Rexel

Moody's Investors Service said it placed Ray Acquisition SCA's B2 corporate family rating, Caa1 €600 million 9 3/8% senior subordinated notes due 2015 and Rexel SA's €1.502 billion senior credit facilities on review for possible upgrade following the company's announcement that it will undertake an initial public offering and use proceeds to repay debt.

The company intends to raise a minimum of €800 million in its IPO. If all proceeds are used to reduce debt, this will result in materially improved credit metrics and lead to greater financial flexibility, the agency said.

Moody's review will focus on the make up of the revised capital structure and how this impacts the credit risk profile, together with changes to financial policies and the positive momentum shown in the company's financial performance.

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