Moody's moves El Corte Ingles view to stable

Moody's Investors Service said it changed El Corte Ingles, SA's outlook to stable from negative and affirmed the Ba1 long-term corporate family rating, its Ba1-PD probability of default rating and its Ba1 guaranteed senior unsecured notes.

"We have changed ECI's outlook to stable because we expect a strengthening in the company's credit metrics, including leverage, which we expect to be just above 4x in fiscal 2021 and to trend below 3.5x in the next 12 to 18 months. Deleveraging is mainly driven by better trading than expected performance and our expectation that the company will repay debt following the €1.1 billion proceeds it expects to receive from the company's recent transaction with Mutua Madrilena, a leading Spanish insurance company," said Francesco Bozzano, a Moody’s vice president, senior analyst and lead analyst for El Corte Ingles, in a press release

"The better than expected operating performance is thanks to lower than expected barriers to shopping related to the pandemic, strong consumer demand and management's successful cost reduction and growth measures implemented in the last 12 months" added Bozzano.

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