Moody’s changes Rexel outlook to stable

Moody's Investors Service said it changed the outlook on Rexel SA's ratings to stable from negative.

The agency concurrently affirmed Rexel's existing ratings including its Ba2 corporate family rating, Ba2-PD probability of default rating, the Ba3 ratings on the company's senior unsecured notes due December 2018, 2019 and 2020, and the NP short-term rating of the €500 million commercial paper program.

Moody’s said the outlook change reflects its expectation that Rexel should benefit from improved growth in certain core markets such as North America (34% of sales) as its economies continue to recover, which will bolster the group's revenue growth compared to the slow return to growth in its European operations (55% of sales) where a more difficult macroeconomic environment is expected to persist especially in France.

In 2014, Rexel's European sales grew by 0.7% however; its North American sales grew by 2.9% year-on-year reflecting a recovery in the non-residential construction end markets.

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