Moody's downgrades Rexel

Moody's Investors Service said it downgraded Rexel SA's senior unsecured notes due December 2016, 2018 and 2019 to Ba3 from Ba2.

Concurrently, Moody's affirmed the company's Ba2 corporate family rating and Ba2-PD probability of default rating.

The outlook remains negative.

On March 15, Rexel repaid the €150 million drawn under its €1.074 billion revolver, and subsequently replaced it with a new revolving credit facility agreement whereby the company will have access to a €1.1 billion revolving credit facility and a €165 million swingline facility.

The new revolving credit facility does not benefit from upstream guarantees. As a result, the upstream guarantees that were attached to the existing senior unsecured notes will be released so that noteholders and lenders continue to have equal treatment, Moody's said.

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