Moody's: Steinhoff view stable

Moody's Investors Service said it affirmed the Ba1 corporate family rating of Steinhoff International Holdings Ltd. and changed the outlook to stable from positive.

The rating action reflects mainly the company's recent announcement that it is in exclusive negotiations to acquire Conforama, a leading European retailer of furniture and household goods and the second-largest furniture retailer in France, the agency said. The deal will be financed through a mixture of debt and equity.

Moody's said it recognizes the strategic rationale for the acquisition on the basis that Steinhoff has a limited presence in the French market, but it nevertheless expects that credit metrics may deteriorate moderately if the acquisition is carried out.

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