On 19 April 2023, Scope affirmed Ceconomy’s issuer rating at BBB-, changed the Outlook to Negative from Stable and affirmed the senior unsecured debt rating at BBB-. Click here for the corresponding rating action release.

Ceconomy's issuer rating benefits from: i) its position as a leading consumer electronics retailer in Europe; ii) good geographical diversification across 11 countries; and iii) the strong financial risk profile with debt protection historically at well above 10x.

Negative rating factors include the company’s low profitability compared to peers, which is also expected to be under further pressure from inflation and lower demand.

This monitoring note does not constitute a rating action, nor does it indicate the likelihood of a credit rating action in the short term. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.

The report can be downloaded here