Carrefour raises interest on benchmark bond in face of possible credit rating downgrade; retailer has lowered its profit forecast twice in last three months
Yohana Valdez
Los Angeles
,
October 15, 2011
(Industry Intelligence)
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A possible negative credit rating from Moody’s Investors Service has forced Carrefour SA to raise interest to 285 basis points higher than the swap rate on its 500 million-euro (U.S.$690 million) benchmark bond, Bloomberg reported Oct. 14.
The No. 2 retailer’s credit rating is being considered for a potential downgrade following a drop in Carrefour’s profit forecast for the second time in three months.
Carrefour is said to be considering how to refinance future debt redemptions, said an external company spokesperson.
The company’s unsecured bonds due April 2021 took their biggest plunge to date when they dropped up to 5% this week. In the last three weeks, the bonds have slipped in value by 9%, per Bloomberg Bond Trader prices.
The primary source of this article is Bloomberg, New York, New York, on Oct. 14, 2011.
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