Moddy's down two steps the rating of Dia and leaves it in junk bond

Moddy's down two steps the rating of Dia and leaves it in junk bond


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Moody's risk assessment agency has decided to lower the long-term debt rating of the supermarket chain DIA two steps, which leaves the company's rating in junk bond, due to the reduction of forecasts announced last Monday.

As reported by Moody's today, Dia's debt has gone from a high pass (Baa2) to enter within the it is commonly known as junk bond (Ba2) and, in addition, has placed all the credit ratings of the company under review for another possible rebate.

The decision of the agency responds to the reduction of between 30 and 40% of gross profit of exploitation or Ebitda, up to a range of 350-400 million euros, announced on October 15th.

The worst expectations of the supermarket chain are due to the drop in sales, but it has also warned that these new Ebitda calculations do not yet include the impact of the Argentine crisis.

Dia accounts are expected to have a negative impact due to the country's high inflation, which stood at 40.5% year-on-year in September, as well as the depreciation of the peso against the dollar, which has exceeded 50% so far this year. %.

At the same time, Dia announced that in the bad situation he suspended the distribution of dividends in 2019.

The reduction of forecasts of the chain of supermarkets has punished the titles of the company, that, despite rising 5.36% today in the Spanish stock market, accumulate a fall in the week of 52.8%.

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