Moody's: Rexel outlook positive

Moody's Investors Service said it changed the outlook on Rexel SA's B1 ratings to positive from stable. It also assigned a Not-Prime short-term rating to the company's new €500 million commercial paper program.

The change in outlook reflects the positive operational progress that the company has been making, as shown in its first-quarter results, the agency said. Moody's expects that these positive trends will continue through 2010, leading to steady deleveraging through growth in EBITDA.

However, the agency believes that free cash flow generation in 2010 will be materially lower than in 2009 mainly because the large working capital inflows experienced in 2009 will not be repeated in 2010.

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