Fitch ups Rexel to positive

Fitch Ratings said it revised Rexel, SA's outlook to positive from stable.

The agency also said it affirmed Rexel's long-term issuer default rating and senior rating at BB- and its short-term issuer default rating and €500 million commercial paper program at B.

Rexel's demonstrated control over its business model and strong cash flow generation through the last cycle are increasingly commensurate with a BB rating, Fitch said.

Although Rexel remains vulnerable, the strength of the free cash flow generation throughout the cycle, strong liquidity and the commitment to maintaining a conservative financial policy are key supporting factors to the group's financial flexibility, the agency said.

The positive outlook reflects the expectation of improved financial metrics for 2011 and beyond, Fitch said, and a consistent financial policy.

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