The rating action follows Fnac Darty’s announced intention to acquire Italy’s Unieuro for around EUR 249m, which could improve the issuer’s business risk profile at the cost of higher leverage.

The Outlook change reflects Scope’s expectation that leverage will reduce to below 2x in 2024, driven by the strict cost control programme, which is helping to maintain operating margins.

The Outlook change reflects expectations that leverage will remain high, driven by pressure on EBITDA. The issuer rating continues to benefit from a strong market position and a good financial risk profile.

The rating upgrade is driven by the improved profitability and credit metrics as Covid-linked operational risks continue to wane.

The rating action is supported by the resilience of the group’s business and financial risk profiles.