...The rating reflects Picard Bondco S.A.'s weak financial profile, which counterbalances its strong business profile. The company has a high resilience through the economic cycle, high profitability and good cash-flow conversion compared with food retailer peers. However, Fitch's rating factors in Picard's high refinancing risk, resulting from its sponsors' aggressive financial policy. Two consecutive debt-funded dividend distributions led to significant releveraging, leaving limited headroom under its `B' rating. Any material operating underperformance against Fitch's rating case forecasts could therefore lead to a negative rating action....
