Moody's downgrades Elior

Moody's Investors Service said it downgraded Elior Group SA's corporate family rating to Ba3 from Ba2 and probability of default rating to Ba3-PD from Ba2-PD. The agency changed the outlook to negative from stable.

"The rating action reflects the protracted impact of the coronavirus outbreak on the company's main end markets notably business and industry, and education despite some easing of confinement measures in the company's core geographies," said Eric Kang, a Moody's vice president, senior analyst and lead analyst for Elior, in a press release.

"While we expect the education end-market to swiftly recover in fiscal 2021, there is a risk that a slower recovery in the business and industry end-market will hinder an improvement of credit metrics to levels commensurate with a Ba3 rating," added Kang.

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