Fitch lowers Financiere IKKS

Fitch Ratings said it downgraded Financiere IKKS SAS's issuer default rating to B- from B.

The outlook is stable.

Fitch also said it downgraded HoldIKKS SAS's senior secured notes to B from B+ and IKKS Group SAS’s super senior revolving credit facility to B+ from BB-.

The downgrades are based on a review of the company’s new business plan, which will see the pace of store openings and profit growth materially slow down, leading to limited growth of funds from operations, the agency said.

A competitive trading environment in the French clothing retail industry is leading to pricing pressure, although it is less pronounced in the key premium segment, Fitch said.

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