Moody’s revises Remy Cointreau to negative

Moody's Investors Service said it changed the outlook on Remy Cointreau SA's Baa3 issuer rating and the senior unsecured rating on the €205 million of notes due December 2016 to negative from stable.

Concurrently, the agency affirmed these ratings.

"Our decision to change the outlook on Remy's ratings to negative reflects the company's weaker-than-expected results during the 2013-14 financial year and our expectations that Remy could find it challenging to improve its credit metrics over the next 12 to 18 months in light of ongoing weak trading conditions in China and the general slowdown in emerging markets," Paolo Leschiutta, Moody's vice president, senior credit officer and lead analyst for Remy, said in a news release.

"Although we see potential for recovery after the current fiscal year, we expect that the company's credit metrics will remain weak, providing the company with limited headroom to absorb potential further headwinds in key markets"

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