27th Sep 2021 20:14
(Alliance News) -Â Moody's Investors Service on Monday assigned B2 ratings to Ocado Group PLC's potential GBP400 million senior unsecured notes offering.
This aligns with the online grocer's B2 corporate family rating, which Moody's affirmed. The outlook is stable, reflecting Moody's belief that Ocado will maintain "an at least adequate liquidity profile" over the next 12 to 18 months.
"Considering the expected continuing weak credit metrics and need for ongoing access to additional funds to support the company's future growth ambitions an upgrade is unlikely in the next two years at least," said Moody's.
Beyond this, strong profit growth, sustained positive free cash flow and material deleveraging could drive ratings upgrades. On the other hand, a deterioration in the company's liquidity profile could lead to downgrades.
Shares in Ocado closed down 1.0% at 1,743.50 pence in London on Monday.
By Lucy Heming;Â [email protected]
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