Moody's downgrades Takko

Moody's Investors Service said it downgraded the corporate family rating of Takko Fashion Sarl to B3 from B2, and its probability of default rating to B3-PD from B2-PD. At the same time, Moody's downgraded Takko Luxembourg 2 SCA's senior secured notes to B3 from B2. The ratings have also been placed on review for further downgrade.

"The decision to downgrade Takko reflects Moody's expectations that the spread of the coronavirus will negatively impact the company's results and financial profile at least in the first half of 2020," said Guillaume Leglise, Moody's lead analyst on Takko and assistant vice president, in a press release.

"Operational disruptions from store closures will lead to an increase in leverage, cash burn and strain liquidity," added Leglise.

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