Moody's downgrades Pronovias

Moody's Investors Service said it downgraded the corporate family rating of CatLuxe Acquisition Sarl (Pronovias) to B3 from B2 and probability of default rating to B3-PD from B2-PD.

Moody's also said it downgraded the rating of the €260 million senior secured credit facilities comprised of a €45 million revolving credit facility due in 2023 and €215 million term loan B due in 2024 to B2 from B1.

The outlook is stable.

The downgrades reflect the company's current and future anticipated underperformance against expectations, Moody's said.

The company's operating underperformance is due to the discontinuation of some of the previous footfall drivers and the distraction derived from the recent changes to the senior management team and the repositioning of the strategy, the agency said.

Moody's said it also noted the challenging trading environment for franchisees, particularly those with overstock from previous collections, which resulted in store closures in 2017.

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