Moody’s lifts Remy Cointreau view to stable

Moody's Investors Service said it changed Remy Cointreau SA’s outlook to stable from negative.

The agency also said it affirmed the company’s Baa3 long-term issuer rating and the Baa3 senior unsecured rating on its €205 million notes due December 2016.

The stabilization of Remy's outlook reflects its strong performance in the past financial year as increasing profitability in its U.S. operations offsets sliding sales in China as a result of the government crackdown on luxury goods, Moody’s said.

It also factors in expectations that Remy's credit metrics will stay in line with its investment-grade rating, removing the previous negative pressure, the agency said.

Moody’s said it expects the company to maintain an adjusted debt-to-EBITDA ratio of less than 3x.

The company has been successful in weathering the difficulties in China thanks to strong momentum in U.S. operations at its key cognac division, the agency explained.

© 2015 Prospect News.
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