Moody's alters InRetail view to negative

Moody's Investors Service said it changed the outlook on InRetail Consumer and InRetail Pharma SA to negative from stable. The agency also affirmed the Baa3 ratings on InRetail and its 2028 senior secured notes. At the same time, Moody's affirmed the Ba1 corporate family rating on InRetail Pharma and its 2025 notes.

“The change in outlook to negative reflects Moody's view that financial risk is high for both, InRetail Consumer and InRetail Pharma, resulting from shareholder distributions and increasing reliance on short-term debt, including leases under IFRS 16, which negatively compares to on-balance-sheet and alternate liquidity. Both companies maintain strong fundamental credit quality and access to bank funding, which we expect to continue.

“Nevertheless, today's action considers their vulnerability should an abrupt loss of access to the capital and credit markets occurs and Moody's view that these practices tend to favor shareholders over creditors, which is inconsistent with their ratings,” Moody’s said in a press release.

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