Casino - comment

S&P have downgraded Casino to CCC+ from B-. The downgrade is driven by weaker market conditions, making asset sales more difficult and a weaker macroeconomic conditions which is likely to drive tougher operating environment for French food retailers, adding further pressure to the Casino’s liquidity.
Separately, in a interview with Les Echos, E.Leclerc management highlight their view that inflation will last, with the impact of rising transport and energy costs to be followed by the energy transition and forced changes in diet. The environment is likely to be difficult in 2023, and have already seen rising prices causing fewer purchases in this years numbers.

This is not a surprise to us and increases the pressure on Casino to crystallise further assets, namely LATAM. Our positioning does not change.