New Look rated Caa2 by Moody's

All,

Moody’s have rated New Look Caa2 with a review for a further upgrade.

The agency expects further cost and thus leverage reduction throughout the year. We concur with that assessment. 

Moody’s also criticise the continued high leverage on the company. We also agree with that. If you are going to hold the equity anyway, why cling to a big debt pile. The restructuring was all pro rata, so there don’t seem to have been great structural reasons to keep the debt on.

Overall however, NL seem adequately capitalised now.

Wolfgang