Casino Guichard was downgraded to CCC- from CCC+ by S&P due to rising risks regarding its restructuring and weak liquidity. With revenues from its French operations falling, a negative EBITDA after leases (from French operations) of €53mn and a cash burn of €700mn, the company’s liquidity situation has worsened. Casino has significant debt maturities whereas its asset values have declined, reducing its ability to address upcoming debt payments via asset sales. It has €1.4bn in debt maturities due over the next 12 months and another €1.8bn due in 2025. Casino launched a consent solicitation earlier to creditors so that a request for/or appointment of conciliators would not constitute a default or event of default under its bond documentation.
Casino’s bonds were trading weaker with its 4.498% 2024s down 0.8 points to 29.8.
