Research Update: Mobilux 2 S.A.S. Outlook Revised To Negative Due To COVID-19's Adverse Effects On Retail; Ratings Affirmed

We believe Mobilux 2 S.A.S. (Mobilux), parent of France-based furniture and electrical goods retailer BUT S.A.S. (BUT), will face significant top-line headwinds in the next few quarters because of the COVID-19 pandemic. We expect Mobilux's credit metrics will deteriorate significantly, with S&P Global Ratings-adjusted leverage exceeding 6x at the end of fiscal 2020 (ending June 30, 2020). Therefore, we are revising our outlook on Mobilux to negative from positive and affirming the 'B' issuer credit rating and 'BB-' and 'B' issue ratings on the company's revolving credit facility (RCF) and €380 million senior secured notes. The negative outlook reflects the potential for a lower rating if performance comes under further pressure because of an extended disruption to consumer spending or

...- We believe Mobilux 2 S.A.S. (Mobilux), parent of France-based furniture and electrical goods retailer BUT S.A.S. (BUT), will face significant top-line headwinds in the next few quarters because of the COVID-19 pandemic. - We expect Mobilux's credit metrics will deteriorate significantly, with S&P Global Ratings-adjusted leverage exceeding 6x at the end of fiscal 2020 (ending June 30, 2020). - Therefore, we are revising our outlook on Mobilux to negative from positive and affirming the 'B' issuer credit rating and '##-' and 'B' issue ratings on the company's revolving credit facility (RCF) and 380 million senior secured notes. - The negative outlook reflects the potential for a lower rating if performance comes under further pressure because of an extended disruption to consumer spending or a weaker-than-expected subsequent recovery that hinders the company's ability to restore credit metrics in fiscal 2021....

Research Update