S&P lowers Rémy Cointreau outlook to negative

Standard & Poor's said it revised its outlook on Rémy Cointreau SA to negative from stable.

At the same time, S&P said it affirmed its BB- long-term corporate credit and senior unsecured debt ratings on the group.

The outlook revision reflects the agency's concerns about the execution of the group's reorganization of distribution - expected over the next couple of years - and associated costs, in a context of slowing growth in the important U.S. cognac market.

The agency said that the ratings continue to reflect the group's aggressive financial profile, limited discretionary cash flow generation and exposure to currency evolution, despite its leading position in cognac and its presence in other high-margin drink categories.

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