Moody’s changes DIA view

Moody's Investors Service said it confirmed the Caa1 long-term corporate family rating, the Caa1-PD probability of default rating, and the Caa2 senior unsecured ratings of Distribuidora Internacional de Alimentacion (DIA).

Moody's changed the outlook to negative from rating under review.

“The confirmation of DIA's rating reflects its improved liquidity following the refinancing of its bank debt and the €490 million equity injection from the investment fund L1," Vincent Gusdorf, Moody's vice president, senior credit officer and lead analyst for DIA, said in a news release.

“Although liquidity concerns have eased, DIA has fallen behind competitors and faces a challenge to substantially improve its business model to close the gap and stop the current level of cash burn."

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