On Monday, Elior shares suffered one of the biggest declines in the SBF 120 index, following the downgrading of the group's credit rating by Moody's.

At around 9:45 am, the restaurant operator's shares were down 0.8% in a relatively stable Paris stock market.

Moody's announced on Friday evening that it had lowered its corporate family rating (CFR) on Elior from 'B2' to 'B3', with an outlook that remains 'negative'.

Moody's justified this decision by the prospect of a sharper than initially expected deterioration in the company's profitability over the next 12 to 18 months, due to continuing inflationary pressures.

According to the agency, the merger with Derichebourg Multiservices (DMS) should make a positive contribution to earnings, but not enough to offset the negative trend expected for the current financial year.

Indeed, Moody's indicates that it expects the company's cash flow (FCF) to remain in the red at the end of the fiscal year ending at the end of September, for the fourth year running.

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