27th Mar 2020 11:47
(Alliance News) - Moody's Investors Service late Thursday said it has placed on review for downgrade Kingfisher PLC's Baa2 long-term senior unsecured ratings.
The outlook has been changed to under review from stable.
The rating action was prompted by the large number of store closures across the FTSE 250-listed retailer's network, Moody's said, as governments seek to limit the spread of the coronavirus by restricting access to non-food retail outlets.
The ratings agency said its review process will be focusing on the extent and length of store closures in the coming weeks, the impact of liquidity measures taken by Kingfisher on its balance sheet, and any implications the coronavirus crisis may have for the company's credit profile over the medium term.
Kingfisher shares were trading 9.7% lower in London on Friday at 153.15 pence each.
By Evelina Grecenko; [email protected]
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