Moody’s downgraded the corporate rating of overleveraged French supermarket group Casino Guichard-Perrachon during a crucial refinancing. The group is already offering a generous spread on its new term loan, which it has to execute in order to unlock up to €2bn of revolving bank debt.
Casino Group’s holding company, Rallye, entered creditor protection arrangements earlier this year, prompting it to insist that there were no credit concerns about the operating company. But investors still sold out of its subordinated debt and remain worried about a debt stack of around €7.2bn.
On Tuesday, Casino