The rating action reflects Scope’s views that the acquisition of Unieuro is credit-neutral, as the temporary increase in leverage is balanced by enhanced diversification and market positioning.

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.