Research Update: Mobilux 2 Affirmed At 'B' On Parent's Conforama Purchase That Raises Uncertainty And Event Risk; Outlook Still Negative

We believe that the acquisition of Conforama France by the shareholders of Mobilux 2 S.A.S. has a business rationale but raises uncertainties and event risk relative to the future scope of Mobilux 2's consolidation scope and capital structure. We also believe that Mobilux 2 has shown a solid trading performance, particularly since the lockdown ended in France, although significant top-line headwinds remain in the next few quarters as a consequence of the recessionary environment. We are therefore affirming our 'B' issuer credit rating and 'BB-' and 'B' issue ratings on Mobilux 2's revolving credit facility (RCF) and €380 million senior secured notes, and maintaining our negative outlook. The negative outlook reflects S&P Global Ratings' view of the uncertainty and event

...- We believe that the acquisition of Conforama France by the shareholders of Mobilux 2 S.A.S. has a business rationale but raises uncertainties and event risk relative to the future scope of Mobilux 2's consolidation scope and capital structure. - We also believe that Mobilux 2 has shown a solid trading performance, particularly since the lockdown ended in France, although significant top-line headwinds remain in the next few quarters as a consequence of the recessionary environment. - We are therefore affirming our 'B' issuer credit rating and '##-' and 'B' issue ratings on Mobilux 2's revolving credit facility (RCF) and 380 million senior secured notes, and maintaining our negative outlook. - The negative outlook reflects S&P Global Ratings' view of the uncertainty and event risks relative to the future scope of consolidation and capital structure of Mobilux 2 following the acquisition of Conforama France by Mobilux 2's parent, Mobilux, and the risks associated with any potential extended...

Research Update